Require that companies’ remuneration committees have employee
representation; to require that companies hold an annual binding shareholder
vote on executive remuneration; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Any public company which has a remuneration committee shall provide that
at least one place on the committee shall be reserved for a person
representative of the employees of that company.
The company may determine whether such persons shall have a vote on the
Each public company limited by shares shall, at each annual general meeting,
propose a motion specifying the remuneration of executives employed by the
company, and the result of the vote shall be binding on the company.
No motion under subsection (1) shall be treated as agreed to unless the
shareholdings of those shareholders who vote in favour comprise at least 75
per cent of the shareholdings of all shareholders who vote on the motion.
(3) In this section, “executive” means any executive director of the company.
(1) This Act may be cited as the Executive Pay and Remuneration Act 2013.
This Act shall come into force at the end of the period of two months beginning
on the day on which it is passed.
(3) This Act extends to England and Wales, Scotland and Northern Ireland.