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Dept of Trade and Industry

Answer

Dr. Cable: To ask the Secretary of State for Trade and Industry what action she has taken since 1997 to address excessive executive remuneration. [117714] Miss Melanie Johnson: In May 1999 the Government commissioned a review of compliance by quoted companies with the Greenbury Code of Best Practice and the Combined Code. Subsequently, a consultation document "Directors' Remuneration" was issued in July 1999 setting out proposals for strengthening the legislative framework. In December 2001 the Government issued a consultation document which sought views on draft legislation. This legislation (The Directors' Remuneration Report Regulations 2002) came into force on 1 August 2002 and applies to quoted companies with financial years ending on or after 31 December 2002. The regulations significantly enhance requirements relating to disclosure of directors' remuneration, particularly with regard to policy matters, and provide for an annual shareholder vote on the Directors' Remuneration Report. Most recently, on 2 June this year, the Government issued a consultation document entitled "Directors' Remuneration--Contracts, Performance and Severance", seeking views on a range of options to improve the linkage between compensation and performance when contracts are terminated.

Secondary information

Type

Written question

Reference

117714; 406 c1102-3W;406 c1104-5W

Session

2002-03

Subjects

Disclosure of information Directors Annual reports Pay Redundancy pay Regulation Voting rights Shareholders Statutory instruments

Link

View this Written question on www.publications.parliament.uk