Department for Business, Energy & Industrial Strategy launches detailed consultation on UK’s framework for corporate governance
Measures designed to strengthen the UK’s corporate governance framework and shareholder influence over executive pay have been outlined in a consultation paper issued by Business and Energy Secretary Greg Clark.
The detailed consultation paper sets out a range of options to address concerns around levels of executive pay, increasing representation of workers, customers, suppliers and investors in the Boardroom and whether our largest private companies should perhaps be subject to more rigorous corporate governance rules.
It calls on businesses, investors, workers and members of the public to air their views on what should be done to ensure that the UK’s corporate governance framework helps to deliver an economy that works for all and maintains our reputation as the best place in Europe to transact business.
New measures focus strongly on:
• strengthening the corporate governance framework for the UK’s largest privately-held companies
• which types of company need to strengthen stakeholder voices and how best the opinions of workers and customers can be better heard in the Boardroom
• increasing shareholder influence over directors’ remuneration, including increasing transparency and simplifying and strengthening long-term incentive plans