The Pensions and Lifetime Savings Association (PLSA) called for workers, pension funds and other stakeholders to be given real powers as part of the UK’s new corporate governance regime.
Responding to the Financial Reporting Councils’ consultation on changes to the corporate governance code, the PLSA welcomed new proposals to introduce greater stakeholder voice into boardroom decision-making by requiring firms to introduce worker directors, stakeholder committees or non-executive directors with designated responsibility for stakeholder issues.
Luke Hildyard, Policy Lead for Stewardship and Corporate Governance, at the Pensions and Lifetime Savings Association, said:
“Companies need to account for their employment models and working practices far more effectively than is currently the case. Just 7% of FTSE 100 companies report on their use of agency workers, while only 21% provide data on training and development*.
“The proposed new measures will help in this respect, and its good news that companies have been allowed the flexibility to choose which option works best for them. However, the authority and accountability of the new corporate governance regime needs clarification and there is a risk that these new measures will represent an ineffective gesture unless the different options for increasing stakeholder voice include key rights and responsibilities.”
Press release
© PLSA - Pensions and Lifetime Savings Association
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