Reforms are being introduced to “address failures in corporate governance”, by giving shareholders the power to engage with companies more effectively. The reforms have been put forward after a March 2012 consultation paper was published, highlighting the problem of rising executive pay which is not linked to performance.
In addition to a binding shareholder vote on pay, the measures announced by the Department of Business, Innovation and Skills include:
To introduce the reforms, the government is to bring forward amendments to the Enterprise and Regulatory Reform Bill, which is currently before Parliament. It is anticipated that the reforms will be in place by October 2013.
Published on 22/06/2012