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Shareholders to get more say over directors' pay

Posted: 13th July 2012   In: Corporate Commercial

Shareholders are to be given greater control over directors’ pay and bonuses under reforms put forward by the Government.

The new measures will give shareholders binding votes on pay policy and exit payments, enabling them to hold companies to account and prevent rewards for failure.

Ministers say they will also boost transparency so it is easier to understand what directors are being paid and ensure that the link between pay and performance is clearly drawn.

A Government statement provides the following summary of the new measures:

The new measures will be included in the Enterprise and Regulatory Reform Bill, which is currently before Parliament and is expected to be enacted by October 2013.

Please contact Jon Alvarez if you would like more information about the issues raised in this article.