The impact of the COVID-19 pandemic on both people and business is immense, and rising economic uncertainty will force HR leaders to make difficult compensation and workforce decisions in the months ahead. Therefore, it is safe to say that increased scrutiny on executive compensation and director pay is inevitable.
To assess the governance response to the unprecedented crisis at hand, we recently analysed the regulatory announcements of FTSE 350 companies, as well as the first 50 Directors' Remuneration Reports (DRRs) published in the 2020 Annual General Meeting (AGM) season. This data provides early insights into how U.K. companies are addressing the updated Corporate Governance Code and shareholder guidelines. Companies that are subject to the new governance code include 28 FTSE 100 companies, 21 FTSE 250 companies and one SmallCap company. Of this group, 20 companies are also subject to a binding shareholder vote on their Directors’ Remuneration Policy at the 2020 AGM.
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