In response to the government consultation document Rewards for Failure the institute claimed the proposals for more legislation would not address the root of the problem.
It added that the solution would more easily be found through better initial disclosure of contract terms, greater emphasis on empowering smaller shareholders and boosting ethical awareness of the directors themselves.
‘Concerns over “fat cat pay” are part of the current lack of trust in capital markets,’ said Paul Moxey, ACCA’s head of corporate governance.
‘Solutions are needed which include measures to ensure ethical awareness and greater transparency – issues which, unfortunately, the Financial Reporting Council failed to make explicit in its new Combined Code on Corporate Governance. Board members themselves must start displaying more sensitivity to the relative balance of their pay and others in their company – CEOs in the top 100 UK companies are typically paid 80 times as much as the average worker.?
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements