Society responds to the FRC’s Corporate Governance Code proposals

In this IR Society response, which draws on the findings from recent member research on the FRC's proposals of most relevance to IROs, the Society is generally supportive of the proposed reforms, but calls for more flexibility and less prescription in certain areas, for example, audit committee oversight of narrative and sustainability reporting given many corporates already have a sustainability committee. The Society expresses support for increased transparency around malus and clawback arrangements, although calls for more clarity around disclosure of their ‘usage’. The Society also identifies several areas where more detailed guidance would be helpful, including ‘good’ outcome reporting, ‘significant’ appointments for ‘over-boarding’ disclosures, audit committee engagement with shareholders and oversight of narrative/sustainability reporting.

Published 13 September, 2023