Do the FRC's new corporate governance rules go far enough?

New corporate governance rules from The Financial Reporting Council (FRC) have received mixed reactions from industry figureheads.

The revised code places greater emphasis on employee engagement and culture, asking that directors consider stakeholder interest when performing their duties and “create a culture which aligns company values with strategy and to assess how they preserve value over the long term.”

It also touched on the issue of high executive pay, stating that remuneration committees (RemCos) should consider workforce remuneration policies and practices when setting director remuneration, and companies should explain the actions they intend to take to consult shareholders when more than 20% of votes have been cast against a resolution.

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