The measures, part of the Enterprise and Regulatory Reform Bill, are to be implemented by October 2013.
BIS has published draft regulations covering the information companies will have to disclose in remuneration reports. The first section, subject to the binding shareholder vote, will set out every element of pay a director could be entitled to, its maximum potential value and how it supports strategic objectives. The second will report on how the company implemented its pay policy.
Meanwhile, the Financial Reporting Council is consulting on two amendments to the UK Corporate Governance Code: extending the code’s provision on clawback arrangements; and limiting the practice of executive directors sitting on the remuneration committees of other companies.
The deadline for comments to BIS is 26 September.