BIS issued a call for evidence, "A Long-Term Focus for Corporate Britain", in October 2010. The consultation looked at corporate governance issues including short-termism, investor engagement, directors' remuneration and takeovers.
The Secretary of State for Business, Innovation and Skills, Dr Vince Cable, announced in June 2011 that, following on from the call for evidence, Professor John Kay has been appointed to carry out an independent review into investment in UK equity markets and its impact on the long-term performance and corporate governance of UK quoted companies
The review will look at:
- how best to ensure that the timetables over which companies and fund managers operate match the interests of their clients and beneficiaries;
- how engagement between quoted companies and their institutional investors can be improved;
- the most effective ways of improving transparency for clients, beneficiaries and companies;
- the legal duties and responsibilities of asset managers and asset owners in the UK; and
- the implications of share ownership in the UK being increasingly fragmented.
The review group will deliver a report to the Government in 2012.
As noted above, Dr Cable also announced that a consultation will be launched in July on proposed changes to corporate reporting which would impose stricter requirements in relation to the disclosure of executive pay and the link between this remuneration and company performance.