Remuneration Consultants Group launches review of code of conduct

The Remuneration Consultants Group (RCG) has launched a consultation for the first formal review of the code of conduct for executive remuneration consultants.

Feedback and comments on fundamental principles and the functioning of the code are invited from a range of parties that include remuneration committees of all UK FTSE All share organisations, institutional shareholders and other stakeholders of UK firms, trade associations, corporate governance experts and individuals with an interest in corporate governance issues.

The consultation is open until 31 August 2011, and comments can be made via the RCG website.

The RCG will consider its response and propose changes, and the formal review of the code will be completed towards the end of 2011.

Dr Martin Read, independent chairman of the RCG, said: “Setting executive pay and getting the balance right to incentivise key talent is a difficult task for remuneration committees.

“Remuneration consultants have an important role to play in helping committees to make well-informed decisions and the purpose of the code of conduct is to ensure that the highest professional standards are achieved.

“We are looking forward to hearing views and feedback on the existing code from a wide stakeholder community as part of our consultation process.”

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