Clause
10Executives’
remuneration reports:
supplementary Question
proposed, That the clause stand part of the
Bill.
Mr.
Hoban: I want to raise a question about the meaning of
subsection (2)(b). It reads that the
“remuneration
report includes...information comparing the remuneration of
relevant executives of an authorised person with
the remuneration of employees of the authorised person who fall within a
prescribed
description.” I
suspect that the disclosure is trying to establish the proportion of
remuneration that goes to the higher earners in the firm. I should have
thought that once the table or the disclosure that the Minister
referred to in the discussion on clause 9 had been produced, it would
be relatively easy, given that total remuneration for the firm is
disclosed in the company’s accounts, to work out what is left
and, therefore, to whom it is paid. It would be helpful if the Minister
would clarify what is meant by clause
10(2)(b).
Ian
Pearson: Clause 10 builds on powers provided in clause 9,
which, as we have discussed, gives the Treasury the power to make
regulations requiring the preparation of a report that discloses
information on remuneration paid to officers and employees of any
organisation within the definition of that authorised person under
FSMA; or a prescribed class of authorised person and others with a
specified connection to the authorised person.
Clause 10
details supplementary provisions related to the powers provided.
Specifically, subsection (2) clarifies that the Government can require
the inclusion of any information in an executives’ remuneration
report that could be required for inclusion in a directors’
remuneration report. That does not limit the information that may be
required to be included in an executives’ remuneration report.
The subsection also provides for the Government to call for comparative
statistics, such as the ratio between the highest and lowest earners,
to be included in the executives’ remuneration report.
Subsection (3) states that the Government can require that
executives’ remuneration reports are filed with the registrar of
the company in question, or the FSA. The Government may also provide
that the FSA may publish reports filed with it. With reference to the
hon. Gentleman’s specific query with regard to subsection (2),
additional clarification is provided by indicating that comparative
statistics such as the ratio between the highest and lowest earners can
be included in the remuneration report. Those statistics can also be
called for for inclusion in the directors’ remuneration report,
under the provision of the Companies Act 2006. If there is any further
information that I can provide to answer the hon. Gentleman, I will be
happy to write to
him. Question
put and agreed to.
Clause 10
accordingly ordered to stand part of the Bill.
Ordered,
That further consideration be now
adjourned.—(Mr.
Mudie.) 4.6
pm Adjourned
till Tuesday 12 January at half-past Ten
o’clock.
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