Britain targets executive pay

Britain’s accounting regulator said it may overhaul rules for corporate pay and introduce measures to make it easier to seize executive bonuses.

The Financial Reporting Council may propose changes to the UK Corporate Governance Code that would also restrict who can serve as a non-executive director on remuneration committees. The proposals follow British legislation on the approval of executive pay, which went into force yesterday.

“The government’s new legislation underlines the importance of boards and investors engaging on directors’ remuneration,” FRC chairwoman Sarah Hogg said. “The FRC is undertaking this consultation to understand if there is a case for changes to the code.”