The UK's independent financial regulator launched its consultation a day after shareholders were granted greater powers to influence executive remuneration they deemed too generous.
The FRC is consulting on three specific proposals:
- Clawback arrangements, which are used to retrieve bonuses from executives when companies fail to hit targets.
- Whether non-executive directors who are also executive directors in other companies should sit on the remuneration committee.
- What actions companies might take if they fail to obtain at least a substantial majority in support of a resolution on remuneration.
FRC, chairman, Sarah Hogg, said: "The Government's new legislation underlines the importance of boards and investors engaging on directors' remuneration.
"The FRC is undertaking this consultation to understand if there is a case for changes to the Code.
"There is no presumption on the FRC's part as to the outcome. All interested parties will have an opportunity to make their views known before we reach a final decision."
If changes are proposed, they will be subject to consultation in the first quarter of 2014. They would then apply to accounting periods beginning on or after 1 October 2014.
