Proposals for shareholder regulation of boardroom pay are advancing, with the Department for Business, Innovation and Skills having published a new consultation paper containing what look to be the final proposals on the matter.

The full proposals apply to all UK quoted companies – privately owned companies will be unaffected.

The main components of the new regulations will be:

• an annual binding vote on future remuneration policy;
• an increase in the level of support required to pass a vote approving future remuneration policy;
• an annual advisory vote on how remuneration policy has been implemented in the previous year; and
• a binding vote on exit payments of more than one year’s base salary.

The new proposals are likely to take effect for accounting periods ending after 1 October 2013.