Corporate Governance Code increases reporting on remuneration practices
Companies are better aligning their Board remuneration policy and practices with long-term shareholder interests according to new research conducted by the Financial Reporting Council (FRC) and The University of Portsmouth.
This research assessed a sample of FTSE 350 companies to determine the extent to which they have applied requirements set by the updated UK Corporate Governance Code in 2020.
The FRC is pleased that the findings support those from the Review of Corporate Governance Reporting published in November 2020. Overall, the report showed that the Code requirements on
directors’ remuneration have had a positive impact on reporting. However, many company reports lacked detail and outcomes so whilst companies are giving more information there is still a danger of boilerplate disclosures.
David Styles, Director, Corporate Governance and Stewardship at the FRC, commented:
“We are pleased to see progress on remuneration reporting brought about by the changes to the Code. Nevertheless, we would like to see further improvement.”
The research report can be accessed here.
Published 28 May, 2021