The Institute of Chartered Accountants has urged the Government to keep the pledge they gave to place company employees in the boardrooms after there were signs that the promise given by Theresa May to do this was in serious jeopardy of being watered down. A recent Green Paper on this issue only stated that they were inviting views on strengthening “the connection between the boardroom and the workforce and other interests”.
The Institute of Chartered Accountants in England and Wales believe that having company employees on the board of companies will do a lot to help modernise them, and could help to curb any excessive pay rises for the bosses, give the employees a real representation in the boardroom to defend their interests, along with making sure the company is held to account for all the decisions that they make.
Chief executive Michael Izza of the Institute of Chartered Accountants in England and Wales said on this subject: “When the Cadbury Code was drawn up in 1992, here at Chartered Accountants’ Hall, it was highly controversial and faced spirited opposition. Yet for a listed company today to ignore its principles would be unthinkable,” said chief executive Michael Izza in a letter to the Telegraph.
“I firmly believe that in another 25 years we will hold the changes that emerge from this process to be as self-evident as the Cadbury Code is now.”
The overhauling of corporate governance also hopefully will include forcing firms to declare the gap between executive and other peoples wages, and giving greater powers to shareholders to vote down pay deals.
You can read more on this story at The Telegraph website by going to the following link: Accountants Call For Workers To Be Placed In The Boardroom
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