What is the primary focus of the Greenbury report?

The Greenbury Report primarily addresses directors' remuneration practices, focusing on the governance and accountability of how directors are compensated within companies. Released in 1995, the report was a significant response to growing concerns regarding excessive pay and the lack of transparency surrounding executive compensation. It established guidelines aimed at improving the disclosure of remuneration policies and practices, ensuring that these were aligned with the performance and interests of shareholders. This report has influenced many corporate governance practices and frameworks, making clear the necessity for boards to provide detailed explanations of remuneration packages and their implications.

While there are other important topics covered by corporate governance and reporting, the specific aim of the Greenbury Report centers around how directors are compensated, which is crucial for maintaining trust and accountability between a company’s leadership and its stakeholders.