The New BIS Regulations for Directors’ Remuneration Reporting – better communication or just more data?
26 May 2015
We have now seen two rounds of reporting under the 2013 Department of Business, Innovation and Skills regulations. Our meeting reviewed their effectiveness and impact, and considered whether they have achieved the core aim of providing investors with better quality information with which to reach informed decisions on support for remuneration policies or just generate more data.
Pressure groups, the press and indeed Vince Cable, the former minister responsible, have all been critical of the way some companies have responded, either in formal compliance or indeed in respect of the spirit of the legislation.
Under the chairmanship of Anthony Hilton, Peter Montagnon offered his views and invited observations from around the table on a range of issues including:
- What has been best practice in implementation?
- Have there been unintended consequences such as a focus on compliance rather than explanation?
- How have investors responded and are they better informed and making rational decisions?
- Does more regulation encourage worse behaviour?
- Is there evidence of greater moderation in reward?
- How satisfied is BIS with the implementation and achievement of its core aims?
As ever at a PARC event, the views of attendees allowed us to draw conclusions on the effectiveness of these relatively new and somewhat controversial regulations.