Remuneration policy meaning

FORTHCOMING CHANGE: On 26 November 2025, within Budget 2025, the government confirmed that from April 2029, only the first £2,000 each tax year of a pension contribution made pursuant to a salary sacrifice arrangement will be free of National Insurance contributions (NICs). Any amount sacrificed by an employee above £2,000 a year will attract both employer and employee NICs, so the portion over £2,000 will, for NICs, be handled in line with standard employee workplace pension payments, meaning the excess is treated in the same way as other employee workplace pension contributions for NICs purposes. Employer contributions are unaffected, as is income tax relief. Employers will need to report the total amount of salary sacrificed through existing payroll software, with HMRC committing to engage with stakeholders. HMRC will publish further guidance ‘before April 2029’. The National Insurance Contributions (Employer Pensions Contributions) Bill 2026 will insert a new subsection into section 4 of the Social Security Contributions and Benefits Act 1992 that empowers the government to make regulations providing for...

This checklist outlines the requirements an alternative investment fund manager (AIFM) must include in its remuneration policy under the AIFM Remuneration Code (the Code) in the Financial Conduct Authority (FCA) Handbook’s Senior Management Arrangements, Systems and Controls (SYSC) sourcebook (SYSC 19B), as well as the remuneration disclosures that belong in an alternative investment fund (AIF)’s annual report. What is the AIFM Remuneration Code (SYSC 19B)? The Code sits in SYSC 19B. It applies to a full-scope UK AIFM managing a UK AIF or a non-UK AIF. It covers pay and bonus for staff. It sets parameters for pay and bonus awards for specified Code staff. The Code comprises nine remuneration principles, set out in SYSC 19B.1.5 R to SYSC 19B.1.24 R. For guidance on each of these principles, see Practice Note: UK AIFMD—Remuneration Code—What are the AIFM Remuneration Code principles? The principles operate on a proportionate basis, meaning an AIFM must apply them in a manner suitable to its size, internal organisation and the complexity of its activities...

ARCHIVED: This Practice Note is archived and is no longer maintained. This tracker outlines the consultation papers issued by the Financial Conduct Authority (FCA) in 2022, together with the release of any follow-on rules and guidance. For FCA consultation papers from other years, see: FCA consultation paper trackers. For material from the Prudential Regulation Authority (PRA) from 2017 and the Financial Services Authority (FSA) from 2008 to 2013, see: PRA consultation paper tracker [Archived] FSA consultation paper tracker [Archived] Risk management and controls CP22/28 (PRA CP 15/22): Remuneration: Ratio between fixed and variable components of total remuneration The FCA and PRA are jointly consulting on removing the current limits on the ratio between fixed and variable elements of total pay (the ‘bonus cap’). The proposals in this consultation paper (CP) would take effect on the next calendar day after the final policy is published-expected in Q2 2023-and would apply to firms’ performance year commencing after that. Responses to PRA...

Antitrust Commission launches investigation into Google’s use of publisher and YouTube content for AI training The Commission has initiated a formal competition investigation to determine whether Google has infringed Article 102 TFEU by using web publishers’ material and content uploaded to YouTube for artificial intelligence (AI) purposes on unfair terms (AT.40983). Commission’s concerns The Commission is assessing whether Google has: used web publishers’ content to produce AI-driven features on Google Search, including AI Overviews (AI-generated summaries shown above organic results) and AI Mode (a chat-style search tab), without proper remuneration and without giving publishers a meaningful way to refuse such use without risking reduced access to Google Search, and/or used YouTube material, including videos and other uploads, to train its generative AI models without compensating creators and without providing an opt-out...

In this issue: Companies House Corporate governance Equity capital markets Accounts and reports Economic Crime and Corporate Transparency Act Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Companies House Companies House announces fee changes from February 2026 Companies House has confirmed a revised fees schedule from 1 February 2026, following its annual assessment to align charges with the cost of providing services. Notably, the digital incorporation filing fee will rise to £100, and the digital confirmation statement fee will increase to £50. These adjustments are set out in the Registrar of Companies (Fees) (Amendment) Regulations 2025 (SI 2025/1137), which were laid before Parliament on 30 October 2025 and take effect on 1 February 2026. The accompanying explanatory memorandum states that the updated fees are intended to recover increased costs linked to implementing the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) and the Economic...

In this issue: Budgets, Autumn Statements and Finance Bills Corporate governance New and updated content Useful information HMRC Manuals tracker Dates for your diary Weekly highlights from other practice areas Budgets, Autumn Statements and Finance Bills Finance Bill 2025 completes all Parliamentary stages The Finance Bill 2025 has now progressed through all Parliamentary stages, with the Third Reading taking place on 19 March 2025. At publication, Royal Asset is scheduled for 20 March 2025. For insight into the provisions in the Finance Bill 2025 of greatest relevance to share incentives practitioners, refer to News Analysis: Share Incentives weekly highlights—14 November 2024—Budgets, Autumn Statements and Finance Bills. See Finance Bill 2025. 19 March 2025... Corporate governance Centrica plc sets out amendments to its directors’ remuneration policy Within its 2024 annual report, Centrica plc outlines amendments to its new remuneration policy, which it intends to put to shareholders at its AGM on 8 May 2025...

This Practice Note This Practice Note reviews employment law matters that can emerge in connection with volunteers and voluntary workers engaged in voluntary or charitable activity. It covers how volunteers are recruited (notably criminal record vetting and immigration considerations), arrangements made with volunteers, the national minimum wage, equality and banned conduct, data protection, and health and safety. In broad terms, a person is regarded as a volunteer where they are free from any duty to work but choose to carry out tasks without remuneration. In the absence of consideration, no binding contract can exist (whether of employment or worker status). That said, volunteers may have out-of-pocket expenses properly repaid without jeopardising their volunteer status. A volunteer may generally arrive and leave at their own discretion. Because volunteer positions are frequently loosely defined, if any form of consideration is identified, the role performed by the individual for the organisation may in fact amount to that of a ‘worker’ or an ‘employee’, thereby conferring statutory employment protections. In February 2026, the...

Rules and guidance The principal rules on publishing and laying a company’s annual accounts and reports appear in Part 15 of the Companies Act 2006 (CA 2006). For these purposes, a company’s annual accounts and reports comprise: the annual accounts the directors' report the strategic report (unless the company is not obliged to prepare one) the directors' remuneration report, which may include a directors’ remuneration policy, and any separate corporate governance statement not included in the directors' report (for a quoted company) the auditor’s report on the accounts, the directors’ report, the strategic report, the auditable part of any directors’ remuneration report and any separate corporate governance statement (unless the company qualifies for audit exemption) Certain statutory requirements governing publication and laying differ according to whether the company is public or private, and whether it is quoted or unquoted. Quoted companies cover UK companies with shares listed in the UK or in another EEA state; AIM companies do...

Meaning of ‘non-executive director’ The broad definition of ‘director’ is not closed. Under the Companies Act 2006 (CA 2006), a director is any person who occupies the office of director, whatever title they hold. Accordingly, this covers both executive and non-executive directors (NEDs). Executive directors are typically authorised, either by the company’s constitution or by authority delegated from the board, to manage the company’s day-to-day affairs, and they usually have a full-time service contract. NEDs generally: have no executive powers play a pivotal role in the company’s corporate governance are not employees of the company There are a number of challenges around granting shares to NEDs. This Practice Note considers the issues to assess when offering shares or share-based remuneration to NEDs, including: the potential impact on the NED’s independence the share dealing provisions of Assimilated Regulation (EU) 596/2014 for the UK, and the Market Abuse Regulation (Regulation (EU) 596/2014) previously and for the EU ...

From: [ insert name of production company ] at [ insert address ] (the Producer) To: [ insert name ] at [ insert address ] (you) Date: [ date ] Dear [ insert name ] We write to record the agreement between you and the Producer for your services, which will be provided under the terms and conditions detailed below. In this letter, Personal Data refers to any details about a living person that enable identification, whether directly or indirectly, notably by reference to an identifier such as a name, an identification number, location data or an online identifier, or to one or more elements specific to that individual’s physical, physiological, genetic, mental, economic, cultural or social identity. 1 Engagement 1.1 The Producer retains you and, in consideration of the Producer’s undertakings set out in paragraph 3, you agree to supply the Producer with your services as a [ specify capacity ] (Services) in connection with [ insert name of production ] (the...

Ordinary resolution That the directors’ remuneration report, excluding the section comprising the directors’ remuneration policy as set out and shown on pages [ insert page no ] to [ insert page no ], as included within the Company’s annual accounts and reports for the financial year ended [ insert date ], hereby be received and approved...

FORTHCOMING CHANGE: On 26 November 2025, within Budget 2025, the government confirmed that from April 2029, only the first £2,000 per year of pension saving made under a salary sacrifice arrangement will be exempt from National Insurance contributions (NICs). Employee sums channelled through salary sacrifice above £2,000 a year will attract both employer and employee NICs, with the effect that any portion exceeding £2,000 will be treated for NICs in the same manner as other employee workplace pension contributions. Employer contributions remain unchanged, and income tax relief is unaffected. Employers will be required to report the total salary sacrificed through existing payroll software, and HMRC has pledged to engage with stakeholders across the sector. HMRC will issue further guidance ‘before April 2029’. The National Insurance Contributions (Employer Pensions Contributions) Bill 2026 will introduce a new subsection into section 4 of the Social Security Contributions and Benefits Act 1992, empowering the government to make regulations so that sacrificed amounts are treated as remuneration arising from employment for NICs purposes. See:...