Tag Archives: Compliance

So are we tiptoeing towards quotas in the UK?

3 Jun

“Slowly, slowly, we approach the nervous foal with our hand out,  proffering a sugar lump,  or perhaps a chunk of carrot,  walking softly and gently on the balls of our feet so as not to startle him, speaking in a low, gentle, moderated voice so as not to cause him to veer up, startled and afraid”.

[As I'm sure David Attenborough never said].

But this approach is how these proposed new regulations from the Financial Reporting Council read,  when the nod towards the foal is so small as to be almost invisible – here’s the wording (my use of bold,  their use of underline):

“To encourage boards to be well balanced and avoid “group think” there are new principles on the composition and selection of the board, including the need to appoint members on merit, against objective criteria, and with due regard for the benefits of diversity, including gender diversity.”

And as Andrew Hill commented in the FT:

“it’s hard to understand why some companies feel threatened by the Financial Reporting Council’s decision to insist on annual re-election of boards and to nod, gently, towards gender diversity.”

Well, quite.

I await further media revelations as to which companies feel “threatened” and why … and what their share prices look like, too.

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