When does the executive pay ratio reporting duty come into force and when are companies required to publish their ratio?

The Companies (Miscellaneous Reporting) Regulations 2018 (SI 2018/860), which introduce a requirement for UK quoted companies with more than 250 employees to publish the ratio between their CEO's total remuneration and employees' pay and benefits, are in force from 1 January 2019.

The requirement for companies to publish their executive pay ratio applies to company reporting for financial years beginning on or after 1 January 2019. This means that:

  • if a company's financial year runs from 1 January to 31 December, the company is first required to include the ratio in its directors' remuneration report for the financial year ending 31 December 2019; and
  • if a company's financial year runs from 1 April to 31 March, the company is first required to include the ratio in its directors' remuneration report for the financial year ending 31 March 2020.