BusinessCompany NewsGovernment plans on directors’ pay come under fire

Government plans on directors' pay come under fire

Government proposals to put directors' pay to an annual shareholder vote have come under fire from the Institute of Chartered Secretaries and Administrators.

The ICSA have warned that ‘this is a step too far’, and could force many of the UK’s leading companies to relocate outside of the UK.

Caroline Phillips, director of the ICSA’s policy unit, said: ‘There have also been rumblings by companies considering a move overseas to jurisdiction with less demanding disclosure requirements. These proposals may be the last straw.’

ICSA also said legislation in this area would be ineffective and counterproductive and could enable disreputable firms to hide behind the law by claiming compliance with the disclosure requirements.

Phillips said: ‘Combining the reporting of history with the forward-looking remuneration policy is fundamentally wrong. Payments to director are normally made under an existing contract and cannot realistically be changed in arrears.’

An alternative proposal, according to ICSA, would be for the current requirements to disclose details of past remuneration to remain. These disclosures should then be accompanied by a statement confirming their compliance with a company’s remuneration policy approved by shareholders. Any changes to directors’ remuneration should then be put to a shareholder vote, said ICSA.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor