The Business, Innovation and Skills (BIS) Committee has launched an inquiry into corporate governance, focusing on executive pay, directors' duties, and the composition of boardrooms, including worker representation and gender balance in executive positions.
One trigger for this has been the failings highlighted by the BIS Committee's inquiries into BHS and the Prime Minister's commitments to overhaul corporate governance.
The inquiry, among other issues, will focus on:
- Is company law sufficiently clear on the roles of directors and non-executive directors, and are those duties the right ones? If not, how should it be amended?
- Is the duty to promote the long-term success of the company clear and enforceable?
- How should executive pay take account of companies’ long-term performance?
- Should executive pay reflect the value added by executives to companies relative to more junior employees? If so, how?
Composition of boards:
- What evidence is there that more diverse company boards perform better?
- Should there be worker representation on boards and/or remuneration committees? If so, what form should this take?
Any written submissions were to be lodged by Wednesday 26 October 2016.