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.
