A push for more disclosure around executive pay is starting to show results at FTSE 100 companies, as measure such as clawback provisions and binding shareholder votes on director pay are leading to more transparency about pay policies being delivered to investors. 

According to an article in the Financial Times, companies are starting to tune into the needs of shareholders, said a remuneration partner at Deloitte, which recently quantified the voting data gathered on pay reports at some of Britain’s largest listed companies.

The new regulations on pay disclosure were rolled out last year and requires a binding vote on the director’s remuneration package every three years. Regulators are also asking that companies shed light on their recruitment policies as well.

The article states that within the first year of implementation, about 35 FTSE 100 companies made adjustments or changes to their pay arrangements; this year, roughly 11 companies followed suit. Now, more than 90 percent of companies have introduced clawback provisions in their remuneration plans.

Deloitte says that companies have shifted their attitude towards new remuneration policies due to increased shareholder approval since 90 percent of votes from more than four-fifths of FTSE 100 companies approved the annual remuneration report—a slight spike in votes when compared to last year.

The main issue for shareholders, according to Deloitte, revolves around recruitment and hiring practices. While appointing an external candidate may seem like a good move for a company, many are in favor of internal appointments since they pose less risk and can be cost effective for the company.