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Government consultation proposes changes to corporate reporting rules

A 12-week government consultation, launched by Andy Burnham's government, proposes changes to corporate reporting, including removing information on CEO-to-worker pay ratios and annual shareholder votes on director pay.

  • The consultation proposes removing information about the ratio between CEO and worker pay.
  • It suggests removing annual shareholder votes on director pay, while retaining a three-year voting requirement.
  • The consultation also proposes allowing companies to shift towards fully virtual annual general meetings.

A 12-week consultation recently launched by Andy Burnham's government proposes changes to corporate reporting. The consultation was initially announced as part of the Starmer government’s efforts to reduce “red tape.”

The proposals include removing information about the ratio between CEO and worker pay, which has been described as a vital benchmark for inequality. It also suggests removing annual shareholder votes on director pay, though votes would still be required every three years.

Additionally, the consultation proposes allowing companies to move towards fully virtual annual general meetings. Companies have been holding online AGMs since Covid, with the government suggesting these could improve “accessibility.”

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