We are advocates for transparent markets, accountable corporations and responsible investments

PIRC is the UK's leading independent research and advisory consultancy providing services to institutional investors on corporate governance and corporate social responsibility.

Since 1986, it has been the pioneer and champion of good corporate governance within the UK. PIRC has a wide spectrum of clients ranging from pension funds, faith-based investors, trade unions to banks and asset managers. Its Corporate Governance Service is an authoritative and vital resource for active investors, whilst its widely-read Shareowner Voting Guidelines provide a market-wide benchmark for investors and forms part of the movement for corporate governance reform and long-term wealth creation strategies for responsible investors. For more information about PIRC or to arrange a meeting, contact Janice Hayward, or call us on 0207 247 2323.

Mind the pay gap

We’ve commented previously in about the ramifications of the widening pay gap between executives and other employees. The FT reports that the Dodd-Frank reform bill contains a little-noticed provision that is likely to increase scrutiny in this area.

Under the provision companies will be required to disclose regularly the ratio of the median annual pay of all their employees to that of their chief executive. Given that the US leads the field in high executive pay, expect some eye-watering ratios to be disclosed as a result.

Could the UK follow suit? There is currently a consultation underway at BIS in respect of narrative reporting. It includes a question about the adequacy of directors remuneration reporting requirements. Could this be an opportunity to raise the idea of disclosure of pay ratios for UK companies?
 

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“PIRC is the guardian...”

 “PIRC is the guardian of good corporate goverance - and shareowner responsibilty - in the UK.“
Investor Relations Magazine