UK’s new governance code targets corporate culture, wider society and pay
The proposed new corporate governance code is shorter and focuses on company culture, extending boardroom responsibility beyond shareholders and ensuring companies work for long-term sustainability.
Sir Win Bischoff, FRC
A proposed new UK corporate governance code will stress the need for boards to consider their “contribution to wider society” and place new responsibilities on directors to manage company culture.
The draft code, published today by the Financial Reporting Council (FRC), also calls for companies to consult with employees, and widens the approach to diversity to include not just gender, but also ethnicity and social class.
The new code also proposes empowering remuneration committees to "override" remuneration outcomes, in a bid to counter unjustified levels of executive pay.
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