06 Mar FRC launches report on remuneration (UK)
The second such report requested by government into remuneration, it examined how directors’ pay varies with performance, and compared it with CEO pay based on company performance.
Sue Harding, director of the financial reporting lab, said the project has “achieved significant agreement among participating members of the investor and corporate communities.”
She added it researched “historic levels of CEO pay together with information on the level of performance-related elements of pay.
“We hope that the Department of Business Innovation and Skills finds the conclusions in this report helpful in their decisions on remuneration reporting requirements”.
Last week saw a backlash from the City and financial services following the provisional agreement to cap bankers.
The rules, which could come in to effect from early next year, stipulate that bank bonuses in the EU should be limited to no more than base salary, or up to twice salary with the approval of shareholders.
Raymond Doherty – economia.icaew.com