Governance should aim at investment for greater good
The key focus of governance reform should not be on reducing the number of scandals, but instead on how to encourage risk-taking and investment in pursuit of a societal purpose, says think-tank Tomorrow’s Company.
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The BEIS select committee has published its recommendations on corporate governance reform. These will be an important input as the government decides what reforms to introduce following its green paper on corporate governance. We agree with many recommendations, but are concerned that more regulatory enforcement and assessment will reinforce an overly prescriptive and tick-box approach to corporate governance.
We agree with the recommendations in many areas. On executive pay, a 25% trigger for bin
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