• Narrative Reporting

    Helping you tell your stakeholders the full story

Narrative Reporting

Narrative reporting is the other information provided in a company’s annual report that can include the company’s business model, activities, performance and position, strategy and, in some cases, greenhouse gas emissions.

The Strategic Report & the Directors’ Report

These two “front end” reports are the most important of the narrative reports. You can find out more about the Strategic Report and Directors’ Report on our dedicated page.

Corporate Governance Reporting

Companies with a Premium listing on the London Stock Exchange must apply the UK Corporate Governance Code (the Code) on a ‘comply or explain’ basis. These companies must include information on their compliance with the Code in their annual report each year.

Companies that do not have a Premium listing on the London Stock Exchange are encouraged to give due consideration to the principles of the Code and apply those that are applicable to a company of their size and nature.

For smaller companies which are not required to apply the Code, the Quoted Companies’ Alliance (QCA) has issued the QCA Corporate Governance Code for Small and Mid-Size Quoted Companies (the QCA Code) as guidance.

The FRC issues an annual report providing useful guidance for companies to improve their corporate reporting.

Directors’ Remuneration Report

The UK Companies Act requires ‘Quoted companies’ to include a Directors’ Remuneration Report (the DRR) in their annual report. The DRR must include a breakdown of directors’ remuneration by individual director, and other specific information such as the comparison of directors’ remuneration against employee pay. At least every three years, it must also include the company’s policy with regards to Directors’ remuneration.

AIM Director Remuneration

While AIM-listed companies are not required to produce a DRR, the AIM Rules for Companies do require certain disclosures about directors’ remuneration to be included within the annual report.

We have published the AIM Directors Remuneration Report, in order to a address a conspicuous lack of information. The report will enable AIM-listed company remuneration committees to compare the salary levels of their CEO, CFO, other executive directors and non-executive directors against their industry sector peers and businesses of a similar size.