The Financial Reporting Council (FRC) publishes the UK Corporate Governance Code 2024

The Financial Reporting Council (FRC) has this month published its UK Corporate Governance Code 2024.

 There are no material changes with regard to the Code’s remuneration provisions which may be summarised as follows:

 Provision 37, requires companies to include reference to malus and clawback provisions in the contracts of their Directors.

 There is a new Provision 38 which requires companies to detail the circumstances in which malus and clawback provisions could be used, the period over which such provisions apply and (if applicable) the need to explain the reason(s) the provisions may have been used in the last reporting period.

Provision 40 of the 2018 Code no longer applies. This required companies to explain how it considered the six factors of clarity, simplicity, risk, predictability, proportionality, and alignment to culture when developing executive pay policies.