The Financial Reporting Council (FRC) has welcomed the new report from the UK government aimed at promoting gender equality in UK boardrooms.
The FRC has released a statement saying that in light of the current public debate on corporate governance, they stand ready to revise the UK Corporate Governance Code following the government consultation.
“Our work on succession planning this year suggested that nomination committees should take a more active interest in talent management, in particular that initiatives are in place to develop the talent pipeline and to promote diversity in board and executive appointments.
“To better inform boards about the link between diversity, strategy and developing the business, more consideration should be given to the nature, variety and frequency of interaction between the board and aspiring candidates at all levels.”
The FRC’s Corporate Culture report observed that building a diverse leadership should be an important issue for boards.
“Our work also showed that leadership capability is also important to effective cultural change, and that poor succession planning and a lack of diversity were important corporate cultural indicators As part of its ongoing role in overseeing and monitoring culture, the board must ensure that senior leaders of the organisation have the desire and capability to align their leadership with the company’s values.”