PwC UK has found FTSE 350 corporate reports are falling short of
new compliance requirements as well as emerging practice and
stakeholder demands.
PwC assessed that only half of the 350 clearly communicated
their business models, as set out by this year’s updated
requirements to the UK Corporate Governance Code.
Charles Bowman, senior corporate reporting partner, PwC warned
that companies that fail to report successfully may risk falling
behind the enforced changes and lose investor trust.
PWC also deemed that only 34% of companies surveyed clearly
explained the activity of their boards and committees.
Despite 78% of companies suggesting that their key performance
indicators are linked to executive remuneration, PWC judged
that the reports of only a quarter of the 350 companies were
adequate to for readers to be able to make a direct link between
the performance outcomes of the business and how management were
rewarded.
“We have seen some companies make great strides in their
corporate reporting and that is to be commended. However, there is
massive room for improvement. The last thing businesses or capital
markets need is the risk of an overnight loss of trust from unseen
issues. Just because it doesn’t feature on the balance sheet, it
doesn’t mean trust can be overlooked,” Bowman said.
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