Draft legislation has been published to implement a package of corporate governance reforms aimed at increasing boardroom accountability. The proposed requirements, which are subject to parliamentary approval, include:
- listed companies with at least 250 UK employees reporting annually on the ratio of CEO pay to the average pay of their UK employees
- companies with at least 250 UK employees publishing a statement of engagement with employees
The legislation will apply to companies with accounting periods from 1 January 2019, so companies must comply with the new reporting requirements from 2020.
Government guidance and Q&As