New guide helps companies avoid the shareholder remuneration backlash

directors' remunerationDirectors’ remuneration incentives are currently the largest source of shareholder dissent with 7% voting against remuneration reports. But how do directors’ remuneration committees find the balance between motivating directors, the interests of the business whilst still appeasing shareholders? Let alone cope with all the new directors’ reporting regulations as well as all the other recent changes affecting directors’ remuneration?

The answer is an updated edition of the popular Directors’ Remuneration Handbook from Bloomsbury. First published following upheaval in regulations following the financial crisis, the handbook has just been updated to take into account the latest changes to regulation as well as the current trends in directors’ remuneration and incentives.

The Directors’ Remuneration Handbook is a useful tool in aiding remuneration committees and their advisers steer a safe path through the complicated and sensitive area of directors’ rewards and incentives.

Long gone are the days of double digit pay increases linked to market rates. Moderate basic pay increases, alternative incentive schemes and greater transparency are the new order. The Directors’ Remuneration Handbook provides plenty of ideas of how to put these into operation.

The book provides advice on how to design an effective remuneration package and policy that meets the needs of the business and directors whilst being accepted by shareholders. It includes detailed sections on various components such as incentives, bonuses, share ownership, pensions and other incentives.

It covers the increasing move towards performance related pay including what to measure and over what time scale as well as how to link remuneration to both business and financial strategy.

The new edition is fully updated with the latest developments including:

  • The Directors’ Remuneration Reporting Regulations (The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 SI No 1981.) including examples of best practice.
  • The new strategic report as required by section 426 of the Companies Act 42006
  • The enhanced Markets in Financial Instruments Directive (MiFID) provisions
  • The final remuneration guidelines of the European Securities and Markets Authority (ESMA)
  • Revised (Nov 2013) ABI Corporate Governance and Remuneration Principles and Guidelines
  • Revised (Nov 2013) NAPF Corporate Governance and Remuneration Guidelines
  • Revised (2013) PIRC Corporate Governance and Remuneration Guidelines
  • Latest changes to taxation of HMRC approved share schemes and their qualifying limits

For this new edition, author and remuneration expert Cliff Weight has been joined by other leading experts including Tony Minns, A Remuneration Committee Chairman and also pensions advice updated and expanded by pension expert Bhargaw Buddhdev.

As part of the popular Bloomsbury Directors’ Handbook series, the Directors’ Remuneration Handbook provides easy to understand legal advice that is very accessible to non-legal professionals.

About the author

Cliff Weight has over 25 years’ experience as a remuneration consultant. Currently an executive director of MM&K, the leading independent remuneration consultant and a member of the Advisory Board of the High Pay Centre, he has also served as a non-executive director of the remuneration committees of two hedge funds and as a member of the Editorial Board of Executive Compensation Briefing. He specialises in advising companies on executive directors’ remuneration, annual and long term incentives and non-executive directors’ fees.

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