"UK rightly recognised as a world leader in corporate governance"
The CBI commented on the Financial Reporting Council’s (FRC) consultation to reform the Corporate Governance Code.
Carolyn Fairbairn, CBI Director-General, said:
“Good corporate governance is an essential ingredient of business performance and the bedrock of trust between business and society. The UK is rightly recognised as a world leader in corporate governance, so the FRC’s efforts to enhance this further will result in better run and more widely admired firms.
“The proposed revisions to the Code including stronger emphasis on independence, setting pay in the context of company-wide pay, and putting more importance on how companies engage with all their stakeholders are all positive steps. Some companies may find these changes challenging at first, but ultimately they are the right thing to do.
“What’s now critical is getting the details of this revision right to ensure the UK retains its reputation as an attractive place to invest and do business. The CBI will now work with member companies to identify opportunities to further strengthen and refine the revised Code.”