SRD II: UK implementation of remuneration changes
An overview of the regulations that implement the directors’ remuneration provisions in the EU Shareholder Rights Directive II.
On 20 May 2019, the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations (Regulations) were published which implement the directors’ remuneration provisions1 in the EU Shareholder Rights Directive II2 (SRD II). The Regulations came into force on 10 June 2019, with some transitional provisions. The Government has also published FAQs on these Regulations.
Most of the new remuneration requirements in SRD II already apply in UK law and so there are only a few changes in these Regulations. See here for a summary of those changes.
The European Commission is also preparing non-binding guidelines on the format of the remuneration report and has published a summary report of the responses received to its consultation.
See SRD2 - are you ready? for the new obligations on asset managers and life insurers and “SRD II: UK implementation: new related party transaction regime” for more information on the other changes to implement SRD II.
1 Articles 9a and 9b
2 Directive (EU) 2017/828 which amends the Shareholder Rights Directive 2007/36/EC.
