Corporate Governance Code increases reporting on remuneration practices
News types: Codes and Standards Announcements
Published: 12 May 2021
- FTSE 350 companies are disclosing more information on remuneration
- A Majority of companies report linking individual rewards to strategy and long-term performance
- However, there remains a lack of detail on the application of the Code principles and provisions
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.
This is part of a series of research commission by FRC to support future policy and improve guidance for companies when reporting against the UK Corporate Governance Code.
Videocast : FRC’s Director of Corporate Governance and Stewardship, David Styles, speaks to Dr Karen McBride and Dr Ahmed Aboud from the University of Portsmouth research team on this joint report on Board remuneration. Please find the link here .
Notes to editors:
The FRC’s purpose is to serve the public interest by setting high standards of corporate governance, reporting and audit and by holding to account those responsible for delivering them. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.
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