Sector Focus: Finance
Employers urged to pay attention to salary ratios
Pay ratio regulations will apply to large UK listed companies with over 250 employees and the first statutory disclosures will be provided from the start of 2020. Disclosures will make companies justify their pay for top bosses and account for how those salaries relate to wider employee pay. New regulations recently came
into force. They mean that, for the first time, the UK’s biggest companies will have to disclose and explain every year top bosses pay and the gap between that and their average worker. The pay ratio regulations will
make it a statutory requirement for UK listed companies with more than 250 employees to disclose annually the ratio of their CEO’s pay to the median, lower quartile and upper quartile pay of their UK employees. Companies will start reporting this in 2020. In addition to the reporting of
pay ratios, the new laws also require all large companies to report on how their directors take employee and other stakeholder interests into account and require
large private companies to report on their corporate governance arrangements. These reforms are part of the
Government’s action to upgrade leading corporate governance and business environment to ensure the UK remains a world-leading place to work, invest and grow a business. The pay ratios regulations will hold Britain’s largest businesses to account for excessive salaries, while recent changes to the corporate governance code will give employees a greater voice in the boardroom. Business Secretary Greg Clark
(pictured) said: “Britain has a well- deserved reputation as one of the most dependable and best places in the world to work, invest and do business and the vast majority of our biggest companies act responsibly. “We do however understand the
frustration of workers and shareholders when executive pay is out of step with performance and their concerns are not heard. “The regulations coming into force today will build on our
Preparing businesses for Making Tax Digital
Employers from across the Barnsley borough attended a networking event to find out how to prepare for the introduction of new financial reforms in April 2019. Attendees heard from Paul
Hinchliffe, Partner, and Jon Taylor, Cloud Accounting Manager at Harris+Co, who explained what Making Tax Digital for VAT is, and how it will affect businesses, as well as providing advice to help
‘The single biggest change computers’
in bookkeeping since the advent of
prepare for the change. Jon also demonstrated some of the software packages that are available which will make bookkeeping much simpler than it used to be. Suzan McGladdery, Director of Business Development at Barnsley College, provided an apprenticeship update, which included sharing how employers can benefit from employing an apprentice and how Barnsley College can help them recruit an
apprentice or up-skill an existing workforce. Jon said: “This is the single
L-R: Jon Taylor, Cloud Accounting Manager at Harris+Co; Suzan McGladdery, Director of Business Development at Barnsley College and Paul Hinchliffe, Partner at Harris+Co
biggest change in bookkeeping since the advent of computers and it will bring huge benefits in efficiencies and new ways of working for businesses. Events like these are really important as they help businesses to start thinking and preparing for the changes that are happening in April 2019.”
Visit
www.barnsley.ac.uk Winter 2019 CHAMBERconnect 65
reputation by increasing transparency and boosting accountability at the highest level – giving workers a stronger dialogue and voice in the boardroom and ensuring businesses are accountable for their executive pay. “These new regulations are a key
part of the wider package of corporate governance upgrades we are bringing forward as a government to help build a stronger, fairer economy that works for businesses and workers.”
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