30 second summary of BEIS recommendations for corporate governance reform

BEIS inquiry into corporate governance

In September 2016 the Business,Energy and Industrial Strategy Committee launched an inquiry into corporate governance. The recommendations in their report published on 5th April 2017 include:

  • expansion in the role and powers of the Financial Reporting Council
  • a new governance Code for the largest private companies
  • the abolition of long-term incentive plans and replacing them with a more simple pay structure of salary plus performance related targets
  • workers on boards should be encouraged
  • the Government should set a target that from May 2020 that at least half of all new appointments to senior and executive management level positions in the FTSE 350 and all listed companies should be women

Green Paper on corporate governance

Meanwhile in November 2016, the Government opened a consultation on a Green Paper on Corporate Governance asking for views on:

  • executive pay
  • employee and customer voice
  • corporate governance in large private businesses

The consultation closed on 17th February and the government's response is awaited.

For more information, as regards the role of company directors, Emplaw Online subscribers may find our card on Company Directors useful