New executive pay clauses in Bill

The Government has introduced amendments to the Enterprise and Regulatory Reform Bill, to include new clauses amending the Companies Act 2006

The Government has introduced amendments to the Enterprise and Regulatory Reform Bill, to include new clauses amending the Companies Act 2006 regarding the disclosure and governance of directors’ remuneration. The clauses add sections to the Companies Act 2006 dealing with the proposed binding shareholder vote on future directors’ remuneration policy, including provisions that will subject any remuneration or termination payments that breach the policy to a statutory trust in favour of the company, the payer or former shareholders (as appropriate). Losses arising from non-compliant payments will also be recoverable from any authorising directors of a paying company, under statutory joint and several indemnities.

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