Proposed new governance code broadly welcomed for emphasis on corporate culture and strengthening shareholders’ and workers’ voices, but there is a call for more to be done on executive pay.
The Financial Reporting Council's proposed revision of the UK's Corporate Governance Code has been met with a broad welcome, though there are suggestions it could have gone further on executive pay.
The High Pay Centre welcomed the revision, which sees deliberate emphasis on the interests of "stakeholders", but suggested more work is needed on long-term incentive plans (LTIPs).
Stefan Stern, director of the High Pay Centre, said: "The emphasis on involving the views of the workforce and recognising the interests of stakeholders is welcome. 'Shareholder primacy' is still a misguided and too narrow a guiding mission for business.
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