Deloitte comments on the FRC’s comprehensive review of the UK Corporate Governance Code
5 December 2017
William Touche, Vice Chairman and leader of the UK Centre for Corporate Governance at Deloitte, said:
“The FRC has taken the opportunity to do a fundamental review and to modernise the Code. The proposed changes fit well with the other parts of the Government’s governance reform package.”
“The whole area of a company’s purpose and stakeholder engagement takes a central role in the Code - and companies will need to ensure they address these areas with integrity, as they will be quickly exposed if their statements do not ring true to their workforce.”
Stephen Cahill, Vice Chairman and leader of Deloitte’s Executive Remuneration Consulting practice, commented on the remuneration aspects of the consultation paper:
“We believe that applying judgement and discretion to remuneration outcomes is the best way of ensuring executive pay is effectively linked to performance and we welcome provisions which encourage remuneration committees to act in this way. The proposed Code includes a focus on encouraging remuneration committees to determine executive remuneration in the context of, and taking account of, wider workforce remuneration policies and practices and it will be interesting to see how this develops.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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