WiredGov Newswire (news from other organisations)
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CBI responds to Kay Review
The CBI responded to Professor John Kay’s review of UK equity markets and long-term decision making.
Matthew Fell, CBI Director for Competitive Markets, said:
“This report is right to focus on tackling the culture of short-termism in the UK which some listed companies get caught up in.
“This culture change can be best achieved by high-quality engagement between Boards and investors, which needs to move beyond corporate box ticking to focus on company strategy.
“There is no silver bullet, however removing the requirements for quarterly reporting and short-term earnings updates will take away unnecessary distractions and help Boards and investors focus on the long-term.
“Executive pay should always be linked squarely to good performance over a meaningful period of time, but it is for individual companies to decide their own pay strategy, with engagement from investors, in accordance with the latest rules on executive remuneration.”
Notes to Editors:
The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.