At the end of December 2010, the Department of Business Innovation & Skills (BIS) issued a summary of responses to its consultation on the future of narrative reporting which was issued in August 2010.
The consultation considered two key elements of narrative reporting; the business review (which all companies, other than small companies, are required to prepare) and the directors' remuneration report (which quoted companies are required to prepare and put to an advisory vote at their AGMs). BIS also sought views on other aspects of narrative reporting including the usefulness and relevance of narrative reports and the accessibility of narrative corporate information. The responses to the consultation (nearly 90 in total) were very mixed and there was no consensus on any of the issues raised.
In June 2011, in the context of its consultation on short-termism (see further below in corporate governance), BIS announced that a consultation will be launched in July on proposed changes to corporate reporting which would impose stricter requirements in relation to the disclosure of executive pay and the link between this remuneration and company performance.