BEIS Committee recommendations on remuneration

Following on from the recent green paper, the report proposes a series of reforms “designed to require directors to take more seriously their duties to comply with the law and the UK Corporate Governance Code” (the Code). They propose doing that by expanding the role and powers of the Financial Reporting Council (FRC) to enable it to “call out” poor practice and engage with companies to improve performance. They envisage the FRC establishing a corporate governance rating system which stakeholders and the public will be able to access. The report also contains a number of specific recommendations to the FRC that it consider improvements and changes to the Code. A number of these relate to listed company executive remuneration.