Here’s what they said
The CBI commented on the government’s proposals on corporate governance. Here is what Paul Drechsler CBE, CBI President, had to say: “Good corporate governance is an essential ingredient of business performance and the bedrock of trust between business and society.
“We know that how companies act and behave determines the way people think about business.
“Companies take this seriously and look forward to working closely with the government to ensure the UK maintains its reputation as a global leader in this field and as a primary location for international investment.
“The CBI is very clear that the unacceptable behaviour of a few firms does not reflect the high standards and responsible behaviour of the vast majority of companies.”
On pay ratios:
“If pay ratios include meaningful context they could prove a useful addition to the debate about executive pay.”
On a public register:
“Providing shareholders with a ‘say on pay’ has been an effective tool and a public register will help to shine a light on the small minority of cases that warrant greater attention.”
On worker representation:
“As the CBI has long advocated, firms will welcome the flexibility to determine which model works best for them when incorporating employees’ views. Fostering good employee relations is vital to successful business and critical to improving the perception of business, as our research has shown.”
On larger companies:
“Society expects high standards of corporate governance regardless of company structure, and the government is right to recognise that private firms require a different approach. The CBI stands ready to work with the Financial Reporting Council and the government to establish meaningful and proportionate corporate governance principles.”