Back to overview

A review of corporate governance in UK banks and other financial industry entities (The Walker Review), 2009

}

Summary

The "comply or explain" approach to guidance and provisions under the Combined Code provides the surest route to better corporate governance practice in BOFIs. The most critical need is for an environment in which the challenge of the executive is expected and achieved in the boardroom before decisions are taken on major risk and strategic issues. The remit and responsibility of board remuneration committees should be extended beyond board members to cover the whole entity. Performance conditions and deferment in respect of variable pay for executive board members and other senior executives should be materially more demanding than previously. The recommended disclosure should ensure that prospective clients know whether a fund manager in pitching for their business operates a model that includes engagement with long-term performance improvement.

Thumbnail image for The "comply or explain" approach to guidance and provisions under the Combined Code provides the surest route to better corporate governance practice in BOFIs. The most critical need is for an environment in which the challenge of the executive is expected and achieved in the boardroom before decisions are taken on major risk and strategic issues. The remit and responsibility of board remuneration committees should be extended beyond board members to cover the whole entity. Performance conditions and deferment in respect of variable pay for executive board members and other senior executives should be materially more demanding than previously. The recommended disclosure should ensure that prospective clients know whether a fund manager in pitching for their business operates a model that includes engagement with long-term performance improvement.
Issuer

United Kingdom

Year

2009

Region

Europe

Issuer (type)

HM Treasury (Government)

Policy Type

Disclosure

Geographical scope

National

Mandatory or voluntary

Voluntary


Main industries targeted
  • Finance & Insurance
  • Wholesale trade
  • Retail trade
  • Professional, Scientific, & Technical Services
Restrictiveness

High

Sustainable Development Goals (SDGs)
  • SDG 5: Gender Equality
  • SDG 10: Reduced Inequality

We have sent you the download link, please check your inbox.

Download again

Something went wrong when trying to download this file.

Try again