Government papers: Corporate Governance Reform: government response

A range of corporate governance reforms have been announced, particularly in relation to executive pay, to increase boardroom accountability and enhance trust in business.

Key reforms:

  • Listed companies will have to reveal pay ratios between chief executives and their average worker.
  • In listed companies where a fifth of shareholders have opposed executive pay packages, the company name will be published on a public register.
  • New measures will seek to ensure an employee voice in the boardroom.

The Financial Reporting Council intends to consult on amendments to the UK Corporate Governance Code in late autumn, with a view to publishing a revised code by mid-2018. This would mean the code would apply to the majority of companies in 2019.