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Corporate reform

Nearly six months have gone by since Theresa May outlined her vision of an economy which works for everyone and since then a great deal has happened on corporate reform issues.

Iain Wright MP opened a Select Committee nquiry and the headline topics were directors’ duties, executive pay and the composition of boards. The committee posed some challenging questions such as the consequences of applying the same rules to public and private companies, whether shareholder activism is just a temporary trend and the role of boardroom advisers. The inquiry prompted interest from academics, fund managers and trade unions, among others. The committee expects to publish its report in a few weeks’ time.

Meanwhile, the Department for Business, Energy and Industrial Strategy published their Green Paper on corporate governance reform which also covered executive pay, as well as strengthening the stakeholder voice and the governance of large, privately held companies.