A new version of the UK Corporate Governance Code comes into force today for listed companies with accounting periods beginning on or after 1st October.
A noticeable and encouraging emphasis within the code is about Boards managing for the longer term and the sustainability of value creation. Remuneration for Board members will reinforce this longer term commitment by aligning rewards with sustained value creation, important aspects bearing in mind the increasing number of shareholders voting against their board remuneration policies this year.
In addition, Board directors will be expected to lead by example encouraging good behaviours across their organisations, the so called " tone from the top," (something that might already be expected of leadership).Hopefully, as the FRC (Financial Reporting Council) behind the new code also emphasises the need for more constructive and challenging debate aided by greater board diversity (including gender, race, approach and experience) a new breed of more varied, enlightened and ethical individuals will start to lead our major companies helping to rebuild public and consumer trust in big business.
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