Initial response to FRC consultation

By 05.12.17BlogAugust 28th, 2020No Comments

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.

Stefan Stern