Commons committee report says the new Audit, Reporting and Governance Authority should be given the tools to clamp down on companies that “behave unreasonably on executive pay”.
The new governance and accounting regulator for the UK should have powers to tackle companies over excessive executive pay levels, according to a report from an influential House of Commons committee. The report from MPs on the commons business, energy and industrial strategy (BEIS) committee ramps up pressures on boards over pay levels yet again. The Financial Reporting Council is about to be replaced by a new regulator—the Audit, Reporting and Governance Authority—following a review. The committee’s report says the new body should be “given the tools and encouragement to be tough on those companies that behave unreasonably on executive pay and fail to adhere to the tighter requirements of the revised UK Corporate Governance