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Govt invites views on director pay reforms

Govt invites views on director pay reforms

Businesses have been invited to put forward their ideas regarding the government's incoming changes to director pay reports.

Reforms that are intended to make the rules in terms of the disclosure of the remuneration packages to senior officials within a firm are scheduled to come into effect as of October 2013.

The government believes making alterations to this part of the employment system is essential to ensure greater levels of transparency in terms of executive pay through imposing a "robust framework" for organisations to abide by.

Included in the revised rules will be clauses such as the streamlining of company disclosure requirements to make sure there is a proper focus on linking wages to performance.

And prior to these regulations becoming compulsory, the administration has asked businesses to comment on the draft rules before September 26th this year.

Vince Cable, business secretary, commented: "For the first time companies will be required to set out every element of pay that a director could be entitled to and how it supports long-term company strategy and performance."

Contact our employment solicitors on 0800 916 9060 or email if you would like advice on any employment matter

Posted by Chris Stevenson