FRC report on creating positive corporate culture

The Financial Reporting Council (FRC) has published a report on creating positive culture. It aims to promote good practice amongst companies by looking at how companies develop, embed, monitor and assess culture across their organisations. The report follows the FRC’s 2016 report on corporate culture and the role of boards, the findings of which informed the 2018 UK … Read more

Updated institutional investor voting guidelines

Institutional Shareholder Services (ISS) has published its UK proxy voting guidelines updates for 2022 and Glass Lewis has updated its Approach to Executive Compensation in the Context of the Covid-19 Pandemic. ISS Proxy Voting Guidelines The key changes to the current ISS UK proxy voting guidelines are set out in an executive summary document and include: Board diversity – In addition … Read more

Latest IA guidance on executive remuneration

The Investment Association (IA) has published its annual letter to remuneration committee chairs as well as its updated Principles of Remuneration. The Principles have been updated to reflect developments in market practice and investor expectations, including: Linking executive pay and ESG targets – Where companies link executive pay and bonuses to ESG metrics, the rationale … Read more

FRC annual review of the UK Corporate Governance Code

The Financial Reporting Council (FRC) has published its Annual Review of the UK Corporate Governance Code. The report discusses the quality of reporting against the UK Corporate Governance Code in 2021 and the FRC’s expectations for companies reporting in 2022. The FRC notes that reporting has improved overall since last year (see our blog post … Read more

Updated Glass Lewis voting guidelines for 2022 AGM season

Glass Lewis has published its 2022 Policy Guidelines and 2022 Environmental, Social and Governance Initiatives Policy Guidelines. The documents set out its views on current market best practice and its voting recommendations for AGMs in 2022. Key updates to the Glass Lewis Guidelines for 2022 include: Board diversity – In line with the recommendation of … Read more

Climate change – our COP26 hub as UN conference approaches

Nearly 200 nations will descend on Glasgow from 1 November 2021 for the 26th Conference of the Parties (COP26), the UN-backed forum for tackling climate change. The annual summit will be a defining moment in the battle to mobilise states and policymakers. With evidence growing that current state commitments fall far short of the core … Read more

Corporate Governance: EP3 – Reporting on stakeholders, decisions and section 172 statements

In this corporate governance podcast, we discuss the FRC Financial Reporting Lab’s recent report on stakeholders, decisions and Section 172 statements with Phil Fitzgerald, Director of the Financial Reporting Lab, and Marie Claire Tabone, Project Manager of the Financial Reporting Lab. The report sets out investors’ expectations in relation to disclosures on stakeholders, the impact … Read more

FCA consultation on diversity-related disclosures by listed companies

The Financial Conduct Authority (FCA) has published a consultation paper (CP21/24) on proposals to require premium and standard listed companies to make disclosures in relation to gender and ethnic diversity at board and executive management level. The consultation follows the publication earlier this year of the five year summary report of the Hampton-Alexander Review on … Read more

Corporate reporting – FRC Lab report on disclosures around stakeholders and decisions

The Financial Reporting Council’s Financial Reporting Lab has published a Report on stakeholders, decisions and Section 172 statements. The report sets out investors’ expectations in relation to disclosures on stakeholders and the impact of decisions on them and gives best practice examples. The requirement for companies to report on how directors have had regard to the matters … Read more