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Written question asked by Emma Reynolds (Labour) on Thursday, 12 October 2017, in the House of Commons. It was due for an answer on Wednesday, 18 October 2017 (named day). It was answered by Margot James (Conservative) on Wednesday, 18 October 2017 on behalf of the Department for Business, Energy and Industrial Strategy.

Managers: Pay

Question

To ask the Secretary of State for Business, Energy and Industrial Strategy, what the Government's policy is on executive pay being approved by an annual vote of shareholders.

Answer

Remuneration policies of quoted companies must be put to a binding shareholder vote at least once every three years. A binding shareholder vote is required to approve any Directors’ remuneration that falls outside the scope of the approved remuneration policy.

The annual Directors Remuneration Report on implementation of the remuneration policy is subject to an advisory shareholder vote. If this vote is lost, a company must put a new remuneration policy to a binding shareholder vote within twelve months.

The Government has no current plans to change these existing shareholder voting provisions.

Secondary information

Type
Written question
Reference
107482
Session
2017-19
Subjects
Pay Managers Shareholders
Link
View this Written question on www.parliament.uk