On December 16th, in the House of Lords, the Companies' Remuneration Reports Bill received its first reading. The purpose of the Bill, introduced by Lord Gavron as a Private Members' Bill, is to amend the remuneration reporting requirements imposed on public quoted companies by the insertion of the following new section in the Companies Act 2006:430A Annual accounts and report: public quoted companies(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 annual average remuneration of the lowest paid ten per cent of the workforce".
It's not clear whether the Bill has Government support, without which it is unlikely to become law.
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