No one is infallible says Jon Moulton, contrary to what the FRC would have us believe about its infallibility.
In its early days, corporate governance was mostly about protecting shareholders from the activities of rogue managers.
Innovations on this theme then seemed like a really good idea. A remuneration committee (remco) to stop directors paying themselves ridiculous amounts? An audit committee to ensure shareholders get a clear and honest picture of business performance and position?
But what happened? Plc salaries accelerated well clear of the rest of the UK economy. Remcos decided to pay top-quartile rates. But as soon as more than 25% of companies adopt that policy, the dog begins chasing its tail.
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