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