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Revised U.K. governance code gives workers more of a voice

Neil Hodge | July 16, 2018

The United Kingdom’s corporate governance regulator on Monday announced a series of changes to improve public trust in large companies following criticism that boards are still too interested in fat-cat pay deals and short-term goals, and investors are too sleepy or timid to exert proper influence.

 

From January next year, U.K.-listed companies will have a requirement for the first time to engage with workers by appointing a director from the workforce, setting up a workforce advisory panel, or designating a non-executive director to take account of employee concerns regarding the running of the company and its future.

 

Companies will also need to report on how they will appease investors whenever a shareholder resolution results in a dissenting vote of 20 percent or more.

 

The revised code, which retains its “comply or explain” approach, focuses on corporate culture and says that boards should create a...

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