FRC Publishes Report on ‘A Single Figure for Remuneration’
The Financial Reporting Council (FRC) has released the Financial Reporting Lab’s (Lab) project report on ‘A single figure for remuneration’, which was undertaken at the request of the Department of Business Innovation and Skills (BIS) in connection with their policy decisions around executive remuneration.
The Lab worked closely with a wide range of leading companies and investors in preparing the proposals contained in the project report, and the Lab is grateful to them for their contribution.
The proposals describe the components of remuneration that the investors involved in the project believe should be contained within total remuneration, as well as how these components should be measured and the related disclosure. Investors also want companies to report separately the most recent awards relating to long term incentives, including performance shares and options, which may vest in the future.
Executive Director of Codes and Standards, Melanie McLaren, said: “We are pleased at the consensus that it has been possible to achieve. It is of course up to BIS to take the final decision, but we believe that one important additional benefit of the proposals should be the simplification of remuneration disclosure, which many now consider to be overly complex. It was to address precisely this sort of issue that we created the Lab.”