The UK Financial Reporting Council (FRC) has proposed for more information around remuneration to be included in company reports.
Other proposals included in the report, A single figure for remuneration, which comes on the back of a FRC Financial Reporting Lab’s (Lab) project requested by the Department of Business Innovation and Skills (BIS) describe:
- Components of remuneration that the investors involved in the project believe should be contained within total remuneration;
- How these components should be measured; and
- Related disclosure.
Investors also called for companies to report separately the most recent awards relating to long term incentives, including performance shares and options, which may vest in the future.
“We are pleased at the consensus that it has been possible to achieve. It is of course up to BIS to take the final decision, but we believe that one important additional benefit of the proposals should be the simplification of remuneration disclosure, which many now consider to be overly complex. It was to address precisely this sort of issue that we created the Lab,” Lab executive director of Codes and Standards Melanie McLaren said.