The long awaited Financial Reporting Council (FRC) consultation in respect of various aspects of directors' remuneration has finally been released. Given the 16 months that have passed since the FRC agreed to consult on changes to the UK Corporate Governance Code, you may think there would be some relatively ground-breaking proposals in the paper. You would be mistaken.
This alert contains our initial thoughts on the FRC’s consultation, which outlines its proposals as to the Corporate Governance Code and clawback, remuneration committees appointing executives of other companies as members and what companies should do in the event they fail to obtain a substantial majority in support of a resolution on remuneration.