Exchange holds up pay rules

PETER RODGERS

Business Editor

The Stock Exchange yesterday bowed to pressure from industry and delayed full implementation of the Greenbury Code on top pay, because of difficulties in framing some of the rules.

Provisions to force companies to seek shareholder approval for long-term incentive schemes were among those put off until next year for further consultation

Other measures delayed were the new rules that phase the granting of options, a ban on the issue of options at a discount, and the recommendation that the full value of directors' pension entitlements is disclosed.

The decision follows protests from companies about what some claim was the high-handed way the exchange put out draft changes to the listing rules - the Yellow Book - at the end of July, inviting comments on relatively minor variations only.

The exchange said it had received 170 replies to the consultative document and had revised its proposals to reflect them.

As well as the details of some new rules being delayed until the first quarter of next year, those that have been agreed will not now come into effect until 31 December, rather than the planned date of the end of this month, to give companies time to familiarise themselves with the requirements.

The new rules that have been agreed - and published as an official revision of the Yellow Book - force companies to increase the disclosure of directors' earnings, as the Greenbury committee recommended.

They also oblige companies to make a statement of compliance with the Greenbury recommendation that remuneration committees should be given a new independence - a sensitive area because the Greenbury report could lead to the creation for the first time of a separate class of directors on company boards, with their own responsibilities.

Company law states that all directors have equal responsibility for running a company. One company chairman said the changes could amount to the first step towards establishing supervisory boards in Britain.

The rules in the revised Yellow Book also oblige companies to make a statement that full consideration has been given to the best practice provisions on remuneration policy, service contracts and compensation.

Another consultative document will be issued at the end of the month.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Recruitment Resourcer

£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn