Clifford Chance

Covid-19 UK Government Aid: Impact on Dividend Payments and Executive Pay

24 November 2020

The UK government has a number of COVID-19 related support schemes in place for companies.

Where a company has sought or is seeking aid from the UK government, this should typically be reflected both in its policy on dividend distributions and in decisions on executive remuneration.

Even in cases where the UK’s HM Treasury (HMT) has not formalised its expectations as a condition of the particular government scheme, what has become clear is that there is an expectation that boards and remuneration and management committees should be alive to these issues and sensitive to the interests of its wider stakeholders, including its workforce, shareholders and taxpayers.

This guide sets out the executive pay and dividend issues for some of the UK government’s key support schemes and what you need to think about now as we approach year end.

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