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HPC response to consultation on the Wates Principles for the governance of privately-owned companies

Large private companies should be subject to the same high standards of stakeholder engagement as publicly-listed counterparts

Earlier this year, the Financial Reporting Council issued the Wates Corporate Governance Principles for Large Private Companies. The principles set out six key aspects of governance on which large companies should report publicly:

The High Pay Centre has now responded to the FRC's consultation on these principles. We are strongly supportive of the proposed new reporting requirements - large private companies can have just as much an impact on society and the wider environment as their publicly listed companies. As such, we feel that certain principles should be more specific in terms of their requirements of the companies, so as to ensure that they engage with them in a meaningful way. For example, large private companies should be compelled to offer workers representation at board level in order to demonstrate proper stakeholder engagement. Companies should also be required to show how they measure their societal and environmental impact, and how they act on this information.

 

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Posted on 10 September 2018

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