Make provision about remuneration reports in public quoted company
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:—
Annual accounts and report
The Companies Act 2006 (c. 46) is amended as follows.
After section 430 (quoted companies: annual accounts and reports to be made
available on website) insert—
Annual accounts and report: public quoted companies
Every public quoted company, as defined in sections 4(2), 385(1) and
(2), shall publish on the first page of the chairman’s statement, chief
executive’s statement, or directors’ report, whichever comes first in the
annual accounts and report, the ratio between the total annual
remuneration of the highest paid director or executive and the total
annual average remuneration of the lowest paid ten per cent of the
The ratio referred to in subsection (1) shall appear in bold type on the
first page of the chairman’s statement, chief executive’s statement or
The total annual remuneration of the highest paid director or executive
and the total annual average remuneration of the lowest paid ten per
cent of the workforce shall also appear in bold type in the text of the
In this section, “remuneration” includes the information specified in
Schedule 8 to the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 (S.I. 2008/410).
In this section, “the lowest paid ten per cent of the workforce” means
the ten per cent of people who have been on the company’s payroll
during the previous financial year and received the lowest annual
The remuneration of any person employed on a part-time basis, or not
employed for the full year, shall be calculated on a pro-rata basis.
The requirement to publish the ratio, as stated in subsection (1), applies
equally to electronic versions of the report and the term “publish” shall
be construed accordingly.”
This Act shall come into force on such day as the Secretary of State may by
order made by statutory instrument appoint.
This Act shall extend to the whole of the United Kingdom.
This Act may be cited as the Companies’ Remuneration Reports Act 2008.