Recommendations on disclosure will affect more than directors.
As companies begin thinking about implementing the recommendations of the Greenbury Committee, some of its consequences loom far larger than originally appeared. The area attracting particular attention is disclosure of directors' pension fund contributions, where the effect - as with share options - will be felt far beyond the board. Greenbury noted that under present obligations 'pension schemes where the employer is making no contribution ... can be valuable to the director, and costly to the company in the longer term'. The committee recommended that annual reports should disclose 'the present value of the extra pension entitlement earned from increases in salary during the year'.