In the UK, the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 and the Corporate Governance Code (amended 2014) both outlined new provisions related
to CEO remuneration that could impact on the level of executive pay as well as the executives’ risk behaviour which include: (1)The requirement to put forward directors’ compensation policies to be
approved by shareholders at least every three years which constitutes a binding vote; (2)The requirement to increase transparency in reporting remuneration policies and reporting CEO total pay as a
single figure; (3)The requirement to include a clawback provision where CEO’s pay is recoverable by their employers. Discuss in detail (1)the meaning of these three regulatory changes, as well as
(2)the possible impact of these changes on the level and structure of executive compensation.