Directors’ Remuneration Reforms in the UK: Enterprise and Regulatory Reform Act 2013 Published
Cleary Gottlieb Steen & Hamilton
The UK Enterprise and Regulatory Reform Act 2013 was published on May 2, 2013 and introduces some key changes to the existing regime relating to the approval and reporting of the remuneration of executive and non-executive directors of UK incorporated quoted companies. The reforms are intended to give shareholders more power to hold companies to account over the structure and level of directors’ remuneration through the introduction of a binding vote on a company’s future remuneration policy, as well as increase transparency in remuneration reporting to make it clear what directors are earning and how this links to company strategy and performance. The reforms will come into force from October 1, 2013. Please refer to the attached memo for further details.