Recent years have seen a succession of developments in the regulation and governance of remuneration. The Financial Services Authority’s Remuneration Code now impacts directly on a wide range of financial services businesses, both large and small. New international regulations similarly impact firms with overseas operations. Firms that fail to comply face stiff financial penalties.
In the UK the government’s reforms will significantly change the structure and content of quoted companies remuneration reports. Binding shareholder votes on forward-looking reward policy will raise the stakes for CEOs and reward professionals alike.
All of which presents an opportunity for the HR team to take the initiative by proactively reviewing existing pay arrangements to make sure they fit with the new regulatory environment, and by making changes where necessary.
We can help you understand which regulations are relevant to you and design policies and processes to ensure that your business complies. We offer clients a simple structured audit of existing arrangements based on a document review and interviews with key individuals, with a written report and a follow-up meeting to discuss the findings. We can take on the completion of regulatory reports on your behalf, or help you build text for your annual Remuneration Report designed to meet the requirements for transparency and clarity of the relevant regulations or codes of practice.
Our services for clients include:
- Design of policy standards and governance processes
- Advice on the structure of executive remuneration
- Audit of existing reward policies and procedures against relevant regulations or codes of conduct
- Remuneration committee advice
- Drafting the Remuneration section for your Annual Report
- Completion of regulatory reports