letters to the editor:Stock Exchange and the pay debate
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.From Mr M. J. Ainsworth Sir: The recent controversy on director's pay has culminated in an undignified race by various bodies to form committees and produce codes of practice. The Institute of Chartered Secretaries and Administrators (ICSA) supports the good intentions and welcomes the principles underlying the work published by the Institute of Directors, but believes that a more co-ordinated response is required.
As custodians of the governance issues within companies, company secretaries are of the view that the IoD's framework for remuneration committees is already being applied in most responsible companies, but fear that companies cannot be expected to complywith dozens of different standards issued by different bodies on the same subject.
Shareholders, too, must find it confusing and be asking themselves which code their companies should be applying. And if shareholders are confused, have we not lost sight of the purpose of this effort?
Recent events have demonstrated that, where self-regulation is the Government's preferred solution, a standing committee is needed to tackle these issues as and when they arise. The Cadbury Committee has proved that this can be done effectively with the help of other organisations and the Institute would strongly support new recommendations introduced through this respected channel.
Despite the fact that it has kept a curiously low profile on issues of corporate governance, the London Stock Exchange played a crucial role in the success of the Cadbury Committee's code of best practice.
Is the time not ripe for the Stock Exchange to assert its authority and play a more public role in corporate governance as the co-ordinator of any such standing committee?
Yours faithfully, M. J. Ainsworth Chief Executive & Secretary The Institute of Chartered Secretaries and Administrators London, W1
26 January
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments