Small business UK news-to-watch — proposed changes to compensation rules.
Excerpt: The impetus behind these measures is presumably the rising levels of executive compensation in the United Kingdom (according to recent press reports, the remuneration of FTSE 100 CEOs has quadrupled since 1998 from an average of £1 million to £4.2 million), and it appears that the Secretary was emboldened by the so-called “shareholder spring” targeting perceived excessive pay. Already, an unprecedented six companies – a number of them household names – have seen support levels of less than 50 percent in favor of their remuneration policies. Press reports indicate that failed votes have even led to executive departures.
While the U.K. government’s measures would certainly represent a significant departure from current practice, they are not as draconian as the March consultation paper might have suggested