Chapter 7 - Corporate Governance Codes From Cadbury to the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Corporate Governance Codes From Cadbury to the Combined Code: United Kingdom Code Definition Cadbury Report - Wider use of independent non- executive directors - Separate role of CEO and Chairman - Establishment of sub-committees - Adherence to code of best practice Hampel Report - Reduced the force of the original Cadbury proposals suggesting greater ‘flexibility’ - Rejected calls for broader accountability - No need for more legislation Self regulation preferred approach Greenbury Report - Addressed issues of directors’ remuneration - Independent Remuneration Committee - Public report showing remuneration of directors - Stock options linked to long-term performance - Contracts limited to one year - Codes were voluntary - All three of them were consolidated into the UK Combined Code o Set out standards of good practice on matters such as: Board composition Director remuneration Accountability Audit Codes Definition UK Turnbull Report - Companies to have appropriate internal controls - Risk assessment vital - Two new dimensions added: enterprise risk analysis and risk mgmt Internal mgmt controls UK Higgs Report - The Board & it’s Committees - Amplyfied the demand for INEDs on the board and in board committees - Roles of board chairman and CEO should NEVER be combined - Director appointments more transparent - Performance should be evaluated annually 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
UK Smith Report - The Audit Committee - Work of the audit committees as key
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Chapter 7 - Corporate Governance Codes From Cadbury to the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online