Binding Shareholder Say-on-Pay Vote on Route to Reality in the UK: U.S. Companies Take Note

The UK government recently proposed legislation providing for a binding shareholder vote on the director remuneration policies of UK-incorporated quoted companies. This proposal could influence future regulatory approaches to the executive compensation issue in the U.S. The memorandum provides a brief summary of the 2012 U.S. say-on-pay season and describes the UK legislative proposal for binding shareholder votes.