Disclosure of director's pensions: new reporting obligations for quoted companies
November 2013Pensions Alert
From 1 October 2013, there are revised and more onerous requirements to disclose details of directors' remuneration, including pension arrangements, from quoted companies. The policy objectives of the revision are:
- giving shareholders more power through binding votes, so they can hold companies to account
- boosting transparency so that what directors are paid is clear and easily understood.
Remuneration reports have to be in a new format with expanded content and a standard method of disclosure and presentation. They now have three distinct parts – an annual statement; an annual remuneration report; and a new directors' remuneration policy. The new forward-looking policy part creates a binding set of commitments by the company on the future remuneration of directors. Pension benefits have to be disclosed in both the annual remuneration report and the policy.