Following years of concern about high levels of executive pay, the Government has introduced legislation requiring listed companies to disclose figures and narrative about the ratio between the pay of their CEOs and that of average employees.
The legislation took effect from 1 January 2019 and applies to financial years starting on or after this date, so the first organisations will publish from January 2020 onwards. But it is important to begin preparations well in advance and even to calculate the ratios using recent data so that organisations know what to expect and can prepare themselves for the inevitable spotlight that will be shone on the published data.
Why should I attend?
Aimed at payroll co-ordinators, payroll managers, HR managers and finance professionals who have responsibility for preparing CEO pay ratios figures and/or the accompanying narrative in the annual Directors’ Remuneration Report. Some knowledge of the current requirements of the Directors’ Remuneration Report is assumed.
What will I learn?
- Identify organisations required to report CEO pay ratio data
- Identify and collect appropriate data for CEO pay ratio calculations
- Calculate the statutory CEO pay ratio figures
- Prepare the figures for compliant publication
- Prepare the supporting information and explanation
- Appreciate the wider internal and external implications of the reported figures for an organisation
- Reason for the policy
- Companies affected and when
- CEO pay ratio reporting requirements
- Choosing a calculation methodology
- The overlap with gender pay gap reporting
- Data definitions and collection
- Calculating the pay ratios
- Publishing the data
- Supporting information and explanation
- Criminal liability and fines
- Media scrutiny and analysis
Gender Pay Gap Reporting and HR Implications:
This is another statutory reporting obligation for all large employers which (like CEO pay ratio reporting) requires the collaboration of payroll, HR and finance professionals and this course is structured to cover the requirements that all three disciplines have responsibility for in this arena. It not only explains in detail how the reportable figures should be calculated, but how organisations can judicially employ these figures to help address their gender pay gap and associated HR implications.
Creating a payroll procedures manual:
CEO pay ratio reporting is another addition to the broad array of tasks and obligations that payroll supervisors and managers must incorporate into their procedural documentation.
This course covers the theory and practicalities that need to be considered when designing a procedures document that all payroll departments need to ensure all statutory and contractual obligations are managed efficiently and professionally.