IAS24 May Lead To Greater Disclosure Of Directors’ Pay

Increased pressure to disclose the full value of individual directors’ remuneration packages may result from the introduction of a new international accounting standard, according to Watson Wyatt. IAS24, which EU-based companies will have to comply with for accounting periods ending 31 December 2005 onwards, requires additional disclosure of senior managers’ remuneration. “While in the UK most elements of directors’ remuneration are already disclosed this, will be the first time that share plan values will have to be disclosed,” said John Ball, head of executive reward consulting at Watson Wyatt. “Some might consider this to be disclosure of directors’ remuneration through the back door.” According to Watson Wyatt, under IAS24, disclosure appears only to be required on an aggregate basis for key management personnel, rather than separately for each individual within this group. However, once companies have produced accounts containing these aggregate figures, it is possible that there will be pressure from shareholders to provide the individual figures.


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