The Chancellor claimed that his budget was ‘progressive’, which would probably be a surprise to those who might justifiably expect to benefit from any usual definition of progressive measures. He also claimed it would boost the prospects for economic growth. How do the corporation tax cuts fare  judged by these claims? The headline policy on corporation [...]

Filed under: Budget, Tax | 1 Comment »

The Kraft bid for Cadbury revealed how few powers UK regulators have to act to ensure that mergers and takeovers in the UK act operate in the public interest. However, one of the few areas where the Government does have the right to intervene is to protect media plurality. If News Corporation’s bid for BSkyB [...]

Filed under: Corporate governance, Media | 1 Comment »

The No 10 Briefing on the flexible working and equal pay bill contains a brief reference to ‘looking to promote gender equality on the boards of listed companies’. The TUC has long been an advocate of greater diversity on boards, including, but going beyond the important issue of gender diversity. At present, company directors are [...]

Filed under: Corporate governance, Equality | Comments Off

There are two interesting corporate governance developments hidden in the detail of the budget report. Mandatory disclosure by institutional investors of how they cast their votes at company AGMs has been a long-standing TUC aim that we have campaigned for over many years. We have edged closer to achieving this today, as the budget report [...]

Filed under: Budget, Corporate governance, Investment | Comments Off

The one-off 50% tax on bank bonuses is welcome.  Setting the qualifying level at median earnings underlines the absurdity of the fact that so many working in the City earn so many times more than average earners for doing – well, a variety of things, including contributing to the greatest financial crisis since the Great [...]

Filed under: Financial crisis, Pre-Budget Report, Tax | 2 Comments »

David Walker’s review of bank governance acknowledges the lack of effective engagement between UK companies and their shareholders and the contribution this made to the financial crisis. But it fails to recognise that weak shareholder engagement and control leaves a gaping hole in the UK’s corporate governance system.

Filed under: Corporate governance | 1 Comment »

In a useful and timely contribution to the financial crisis debate, PIRC – the Pensions Investment Research Consultants – has published a manifesto outlining its recommendations for reform of corporate governance and capital markets. PIRC recognises that alongside a catastrophic failure of financial regulation, the financial crisis represents a failure of corporate governance, and its [...]

Filed under: Corporate governance, Financial crisis, Pensions | 2 Comments »

The ban on short-selling in financial stocks brought in at the end of last week by the FSA and the SEC was greeted with some scepticism as well as relief, but it has been credited with helping to boost the stock market after its recent plunges.  The actions of the regulators have been mirrored by [...]

Filed under: Economics | 2 Comments »