The UK government has published answers to frequently asked questions (FAQs)on the new Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019. The new rules came into operation on 10 June 2019 and these FAQs provide an overview of the changes to, timing and scope of the regulations.
Among the changes introduced in the new regulations, more detail must be provided on remuneration policies; the remuneration report must compare the annual change of each director’s pay to the annual change in average employee pay, over a rolling five year period; and the report must set out any changes made to share options granted or offered and the main conditions for the exercise of these rights including the exercise price and date, compared to the previous year.
The regulations apply to UK-incorporated companies whose shares are on the FCA’s Official List7, listed in the European Economic Area or admitted to dealing on the New York Stock Exchange or Nasdaq (quoted companies) and/or are traded on a regulated market in the UK or the EEA (traded companies).
