Executive remuneration: changes in 2013

The case of Maidment v Attwood and Others supports the regulatory protections in place for shareholders and existing corporate governance policies. In line with these policies, the Government plans to implement further reforms regarding director’s pay, to take effect from October 2013. 

The reforms intend to ‘strengthen the hand of shareholders to challenge excessive pay’ and include the introduction of a binding vote on a company’s future pay policy. It will require the support of a majority of shareholders approve the pay policy. The vote will take place annually unless companies choose to leave their pay policy unchanged, in which case it will happen at least once every three years…

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