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Director Remuneration: a gap in the disclosure rules
Author(s) -
Ward Martin
Publication year - 1998
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00079
Subject(s) - remuneration , accounting , listing (finance) , business , payment , obligation , legislation , executive director , annual report , management , finance , law , political science , economics
As a result of the recommendations of the Greenbury Committee on directors remuneration, UK listed companies must now disclose information in the annual report and accounts additional to that required by legislation. Nevertheless this paper shows that a loophole still exists regarding disclosure of specific remuneration packages for each executive director. Remuneration for outside directorships can be paid directly to the director concerned or to the company releasing them. The majority of annual reports remain silent on this matter, but where the director receives the payment there is no legal or listing obligation for its disclosure by the releasing company.