Directors’ pay: shareholders to have final say

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During the past year, Shoosmiths has outlined some of the changes proposed by the government in relation to directors’ remuneration.

Those proposals have now come to fruition with the Enterprise and Regulatory Reform Act 2013. The act introduces a new legal framework for remunerating directors of quoted companies and, for the first time, attempts to establish a statutory-based link between pay and performance by giving shareholders a say in remuneration policies.

The new legislation amends Companies Act 2006 provisions and introduces a number of key changes for quoted companies, essentially companies registered in the UK with equity listed on the main market in the UK, in another state in the EEA, on the New York Stock Exchange or on NASDAQ (this does not include AIM-listed companies)…

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