IoD welcomes sensible approach to boardroom diversity

Dated: 11 October 2011

Commenting on proposed changes to the UK Corporate Governance Code in relation to disclosure of boardroom diversity policies, Dr. Roger Barker, Head of Corporate Governance at the Institute of Directors, said:

“As advised by the IoD, the new disclosure requirements in the Code will relate to diversity policy more generally, not just gender diversity. This broad treatment of diversity is a sensible approach from the Financial Reporting Council. The FRC has also decided, very wisely, to avoid prescribing what a company’s diversity policy should look like.

“However, the FRC is also changing its recommendations on board evaluations, stating that diversity should be considered as part of this process. In the IoD’s view, this addition is not necessary as board diversity must already be considered as part of the work of the nomination committee. The effect of the change is to increase the prescriptiveness of the Code regarding the methodology of board evaluations, which would have been best avoided by the FRC.”

 

  • Following a recent consultation, the Financial Reporting Council is proposing changes to the UK Corporate Governance Code. These changes relate to the disclosure of boardroom diversity policies, and will take effect from October 2012. Full details can be found on the FRC’s website: http://www.frc.org.uk/press/pub2645.html

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with ten UK centres (three in London, one each in Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.
  • For further information, visit our website: www.iod.com