Companies: Directors' Pay

House of Lords written question – answered on 3rd July 2012.

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Photo of Lord Myners Lord Myners Labour

To ask Her Majesty's Government, further to the answer by Baroness Wilcox on 20 June (Official Report, col. 1778), what consultation arrangements are in place for employees of UK companies to provide advice on directors' pay.

Photo of Baroness Wilcox Baroness Wilcox The Parliamentary Under-Secretary of State for Business, Innovation and Skills

We encourage employees to make use of the tools that they have to express their views on directors' pay. Under regulations implementing the information and consultation directive, all employees of organisations with 50 or more staff have the right to request an information and consultation (MX) agreement. The request must be supported by 10% of employees. The employer is then obliged to negotiate with staff to agree on the topics they will be consulted on and how.

The Government are currently consulting on revised remuneration reporting regulations, determining what companies should be required to say in directors' remuneration reports about whether employee views have been sought.

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