News May 2021 Corporate Governance Code increases reporting on remuneration practices

Corporate Governance Code increases reporting on remuneration practices

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
Companies are better aligning their Board remuneration policy and practices with long-term shareholder interests according to new research conducted by the FRC and The University of Portsmouth. This research assessed a sample of FTSE 350 companies to determine the extent to which they have applied requirements set by the updated UK Corporate Governance Code in 2020.
 
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:
 
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