The Companies Remuneration Policies Bill was presented in the House of Lords by Lord Gavron and had its first reading last month. The Bill provides for:
- Decisions of the remuneration committee of a company relating to the remuneration of the company’s directors and five most highly paid employees to be required to be ratified by ordinary resolution at an annual general meeting before being implemented. The same decisions must also be the subject of a secret ballot amongst all of the relevant company’s employees, although the outcome of the vote would not be legally binding.
- Where such a secret ballot has been held, the results must be published prominently in the company’s next annual report.