Initial response to FRC consultation
A welcome and necessary tightening up - and sharpening up - of the combined code. Businesses will have to take note and act
The High Pay Centre welcomes the FRC's proposed reforms to the combined code, set out in its consultation document:
The emphasis on involving the views of the workforce and recognising the interests of stakeholders is welcome. "Shareholder primacy" is still a misguided and too narrow a guiding mission for business.
No incentive plan which pays out after five years should be labelled "long term". But insisting on a five rather than three year period for such shemes is a modest improvement.
LTIPS remain a flawed instrument which should be dropped, however.
We look forward to working with the FRC as it proceeds with this important consultation.
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