The government is consulting on its corpoirate governance green paper. It will close in three months’ time, in February. It discusses Executive pay; Strengthening the employee, customer and supplier voice; and Corporate governance in the UK’s largest privately held businesses.
It is consulting about whether there should be employee representation on boards. It also includes questions about diversity on boards . The consultation refers to reviews of gender and ethnic diversity on boards,. It asks about the role of remuneration committees. "It is important that remuneration committees are advised by and have a greater connection with the workforce, and that they should be less insular in their approach." Says Greg Clark Secretary Of State For Business, Energy And Industrial Strategy.
"The concern is that remuneration committees in public companies has excluded outside voices."
" The Prime Minister was very clear that we should have consumers and workers represented on company boards and that is what the proposals will do" .
In housing and education sectors this is also an important discussion about coprorate governance to have . It is recommended that boards discuss this in their annual governance reviews. It has long been recognised in housing that it is important to have the resident's perspective represented on boards and in schools parents on school governing bodies. Staff have been given a voice in school governing bodies but rarely in housing unless the CEO is also a member of the board. How would having front line staff on housing boards help governance and promote the success of the business for the purpose for which it was established. We would love to hear your views. Click to see to the consultation