FRC publishes report on 'A single figure for remuneration'
News types: Publications
Published: 21 June 2012
The Financial Reporting Council (FRC) has today released the Financial Reporting Lab’s (Lab) project report (PDF) on ‘A single figure for remuneration’, which was undertaken at the request of the Department of Business Innovation and Skills (BIS) in connection with their policy decisions around executive remuneration.
The Lab worked closely with a wide range of leading companies and investors in preparing the proposals contained in the project report, and the Lab is grateful to them for their contribution.
The proposals describe the components of remuneration that the investors involved in the project believe should be contained within total remuneration, as well as how these components should be measured and the related disclosure. Investors also want companies to report separately the most recent awards relating to long term incentives, including performance shares and options, which may vest in the future.
Executive Director of Codes and Standards, Melanie McLaren, said:
‘We are pleased at the consensus that it has been possible to achieve. It is of course up to BIS to take the final decision, but we believe that one important additional benefit of the proposals should be the simplification of remuneration disclosure, which many now consider to be overly complex. It was to address precisely this sort of issue that we created the Lab.’
Notes to editors
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The Financial Reporting Council is the UK’s independent regulator for promoting high quality corporate governance and reporting to foster investment.
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The Financial Reporting Lab provides an environment where investors and companies can come together to develop pragmatic solutions to today’s reporting needs:
a) As a learning space, companies can use the Lab to test new reporting formats with investors, and investors can indicate areas where management can add greater value through the information they provide;
b) As a hub to support innovation in reporting, the Lab’s focus on gathering and sharing evidence from the market provides the broader corporate community with feedback from shareholders on the value that new reporting formats bring. More information about the Lab’s work can be found here. -
The report, “A single figure for remuneration,” can be downloaded here (PDF).