Corporate weekly highlights—21 October 2016

Corporate weekly highlights—21 October 2016
Welcome to the weekly highlights from the Lexis®PSL Corporate team for the week ending 21 October 2016, which provide news updates and a comprehensive list of dates for your diary. This week’s edition features: the International Corporate Governance Network’s three new best practice guides on executive director remuneration, non-executive director remuneration and board diversity; the Financial Conduct Authority’s final report on investment and corporate banking and consultation on restrictive contractual clauses; and the new Criminal Finances Bill which aims to overcome money laundering.


Corporate governance

ICGN publishes guidance on executive and non-executive director remuneration

The International Corporate Governance Network (ICGN) has published new guidance which aims to provide a consistent and global perspective focused on major aspects of remuneration policy and practice designed to assist companies in better understanding long-term shareholders’ views, as well as serve as a tool for investors when engaging with companies.

The ICGN is an investor-led organisation of governance professionals with the aim of promoting effective standards of corporate governance to advance efficient markets and economies globally. The ICGN has published three new best practice guides which form part of a suite of guidance on corporate governance that includes the ICGN Global Governance Principles (published in 2014).

The guidance on executive remuneration replaces the 2012 guidance. It includes four main changes to: first, provide greater clarity on committee leadership; second, refer to motivational considerations beyond financial remuneration; third, explicitly provide that base salary is payment for achieving what is expected of the executive, and that variable remuneration is payment for out-performance; and fourth, include environmental, social and governance factors in the assessment of performance to help achieve sustainable long-term value creation. In summary, the guidance discusses the role

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