The UK Financial Reporting Council (FRC) has just released its Developments in Corproate Governance and Stewardship 2014 Annual Report and under the chairmanship of Sir Win Bischoff. Key concepts covered include the UK Stewardship Code (including investor / firm engagement), diversity, and risk governance and disclosure.
Engagement issues included remuneration proposals, strategy, objectives, board leadership, boardroom composition, and succession. The FRC reports a 94% compliance rate for the Code (relying on data provided by Grant Thornton), including 96% compliance rates for seperation of CEO and Chairman roles and nomination committee composition, 92% for audit committee composition, and 90% or better compliance for NED representation numbers and remuneration committee composition.
On the diversity front, numbers provided to the FRC by Cranfield School of Management indicate that during women accounted for 32% of new director appointments in FTSE 100 companies and 24% in FTSE 150 companies (for 6mos to September 30th, 2014), versus 27% and 29% respsectively for the equivalent period in 2013.
Code changes (effective October 1st 2014) on the risk front include:
- Going concern representations,
- Assessment of principal risks by the board,
- 12month statement about meeting liabilities and operations going forward,
- Effectiveness review of risk management and control systems.
More information including the annual report can be found at https://www.frc.org.uk/.
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