Gender Pay Gap – three things for businesses of any size to consider Legally, the reporting of the Gender Pay Gap (“GPG”) is only required by companies that have 250 or more employees who are based in England, Scotland or Wales. However, there are some important lessons for all organisations in respect of remuneration and the issue…

April 23, 2019 Read more >

New Directors’ Remuneration Reporting Regulations On 10 April 2019, the Government laid before Parliament a new set of revisions to the Directors’ Remuneration Reporting Regulations (DRRR or “Schedule8”). After the wholesale revision to the DRRR in 2013, the regulations remained pretty much unchanged until July, 2018. The 2018 Companies (Miscellaneous Reporting) Regulations then introduced a…

April 17, 2019 Read more >

Pending changes to Directors’ Remuneration Report Regulations On 3 March the European Commission issued new guidelines on the standard presentation of the remuneration report under Directive 2007/36/EC. This was to comply with a mandate presented in Article 9(b)6 of the 2017 revisions to the second Shareholder Rights Directive (SRD II)[1]. The guidelines are non-binding and…

March 28, 2019 Read more >

Executive pensions – do you know your limits? In the past, pension benefits used to form a substantial proportion of top executives’ total remuneration.  This was not just because their entitlements were based on higher salary levels than employees generally but also because these executives had more generous percentage employer contributions or accrual rates.  Moreover,…

March 22, 2019 Read more >

Whether you are a well-established organisation or still in early stages, it is important to make sure that the long term elements of your executive and key personnel remuneration are working properly for your business. Whilst establishing whether or not this is the case will take some time and discussion, it is important for anyone…

February 27, 2019 Read more >

Labour Party policy input on executive remuneration In November 2018, John McDonnell, Shadow Chancellor, published a review he had commissioned from a group of 13 academics into the thorny subject of executive pay.  The review is described as “independent” but the intellectual allegiance of the contributors is evident in the title: “Controlling Executive Remuneration: Securing…

February 26, 2019 Read more >

Please click here to read an overview of the evening in which the theme for discussion was: “Could Remuneration Committees take a more active approach to gaining the high ground on executive pay?

February 26, 2019 Read more >

Might EVA be making a comeback? Economic Value Added (EVA) was a popular financial measure in the 1990s, used by many major companies as well as investment analysts.  Interest in EVA has recently re-emerged as a result of the acquisition of EVA Dimensions by Institutional Shareholder Services (ISS) last year. EVA is defined as: EVA…

February 25, 2019 Read more >

Companies’ social purpose Over the last few years we have seen companies come under increasing scrutiny from the public, media and politicians.  In response, we have seen a new Corporate Governance Code, new disclosure regulations and extra requirements for investors.  One theme that has emerged is a new emphasis on companies’ social responsibility.  This trend…

February 20, 2019 Read more >

Executive Director Pensions and Post-Employment Shareholding Our December e-news described the new Investment Association (IA) Remuneration Principles published on 22 November 2018.  On 23 January 2019, the IA announced the specific approaches which IVIS will take at AGMs in 2019 on two of its new requirements: Executive Director Pensions and Post-Employment Shareholding Periods.  These apply…

January 24, 2019 Read more >

New Financial Reporting Lab report on Performance Metrics – what Remuneration Committees should take away The Financial Reporting Lab was launched in 2011 to provide an environment where investors and companies can come together to develop pragmatic solutions to today’s reporting needs. The Lab has worked with 65 different companies, 60 investment organisations and over…

January 22, 2019 Read more >

“MM&K continues to develop its global reach” Between 4th and 7th January, Paul Norris and Nigel Mills attended the fifth Annual Conference of the Global Governance and Executive Compensation Group (“GECN”) in Sydney. The GECN is a group of independent firms, whose logos appear below, specialising in advising corporate clients on executive compensation and good…

January 10, 2019 Read more >