Consultation launched into corporate governance, executive pay and representation at board level
Close date: 17 February 2017
The Government has launched a Green Paper into improving the corporate governance framework, focusing on: executive pay; increasing the influence of shareholders, workers, customers and suppliers at board level; and raising minimum standards of corporate governance for the UK's largest privately-held companies.
The consultation calls for views on a range of options for updating the corporate governance framework on executive pay, in five areas:
- strengthening shareholder voting rights;
- encouraging greater shareholder engagement with executive pay;
- strengthening the role of remuneration committees, including improved engagement with shareholders and employees;
- improving transparency on executive pay; and
- improving the effectiveness of long-term pay incentives.
In relation to strengthening the influence of shareholders, employees, customers and suppliers at boardroom level, the Green Paper invites views on options including establishing stakeholder advisory panels and appointing individual stakeholder representatives, such as employee representatives, to company boards.
The Green Paper asks for views on whether or not privately-held businesses should be subject to more stringent corporate governance and reporting requirements, and if they should be, how this should be achieved, for example by extending the corporate governance code or by the introduction of a new separate code.
Consultation document: Corporate governance reform: green paper
Consultation outcome:Corporate governance reform: Government response