international employment law firm alliance L&E Global
United Kingdom

UK: Corporate governance

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.

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