UK: Directors’ remuneration – revisions to GC100 and Investor Group guidance

The GC100 and Investor Group has revised its guidance for listed companies on preparing the new style remuneration reports to be included in their annual reports. It first published the Guidance in September this year (see our corporate e-bulletin 2013/20).

A number of minor updates have been made to the Guidance, including:

• Pension related benefits and the single total figure – Guidance that the total value of pension related benefits should be disclosed in the single figure table (including pension accrual, pension funding by the employer and payments in lieu of pension provision).
• Total pensions benefits – Commentary on the disclosure of directors’ prospective pension entitlements under a defined benefits or cash balance benefits pension scheme.
• Future policy table – Arrangements which are covered by grandfathering statements, because they prior to made before the directors’ remuneration policy coming into effect or prior to 27 June 2012, must still be disclosed in the future policy table.
• Remuneration policy bar chart and options – The remuneration policy must include bar charts setting out the remuneration each director could receive. The revised Guidance includes updated commentary on possible ways to reflect market exercise price options in the bar chart.

The paragraphs which have been amended are 1.1, 3.1, 3.2, 3.3, 4.1.1 and 4.8. Where there is new or amended commentary in the Guidance, this is highlighted in a footnote to the new or amended text.

The Revised GC100 Directors’ Remuneration Reporting Guidance is available in the GC100 section of the Practical Law website.