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Companies' Remuneration Reports Bill [HL]


Companies’ Remuneration Reports Bill [HL]

1

 

A

Bill

To

Make provision about remuneration reports in public quoted company

accounts and reports. 

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:—

1       

Annual accounts and report

(1)   

The Companies Act 2006 (c. 46) is amended as follows.

(2)   

After section 430 (quoted companies: annual accounts and reports to be made

available on website) insert—

“430A   

Annual accounts and report: public quoted companies

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(1)   

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

10

annual average remuneration of the lowest paid ten per cent of the

workforce.

(2)   

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

directors’ report.

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(3)   

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

annual accounts.

(4)   

In this section, “remuneration” includes the information specified in

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Schedule 8 to the Large and Medium-sized Companies and Groups

(Accounts and Reports) Regulations 2008 (S.I. 2008/410).

(5)   

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

 

HL Bill 10                                                                                              

54/4

 
 

Companies’ Remuneration Reports Bill [HL]

2

 

during the previous financial year and received the lowest annual

remuneration.

(6)   

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.

(7)   

The requirement to publish the ratio, as stated in subsection (1), applies

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equally to electronic versions of the report and the term “publish” shall

be construed accordingly.”

2       

Commencement

This Act shall come into force on such day as the Secretary of State may by

order made by statutory instrument appoint.

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3       

Extent

This Act shall extend to the whole of the United Kingdom.

4       

Short title

This Act may be cited as the Companies’ Remuneration Reports Act 2008.

 
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Revised 17 December 2008