The Companies (Miscellaneous Reporting) Regulations 2018 have been laid before Parliament, which if approved, will require that at the end of every financial year, each UK listed company with more than 250 UK employees will have to justify their chief executive’s salary and disclose and explain the difference between their chief executive’s salary and their average UK worker’s salary, this difference being referred to as the ‘pay ratio’. The Regulations will come into effect from 1 January 2019 meaning that companies will start reporting their pay ratios in 2020. The Regulations also require the directors’ report for each financial year to set out how organisations have engaged with employees, including the action taken to provide information and consult with them on a regular basis.

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