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Soaring to New Heights: Governance Considerations for Nomination and Remuneration Committees

The UK Government’s recent reform proposals, the shift towards stakeholder capitalism and the pandemic are driving changes in how the UK’s largest businesses are run and governed. In this report, EY addresses the oversight of human capital and other matters related to people, with a focus on the evolving roles of the nomination and remuneration committees.
Key focal points:
  • How changes to the 2018 UK Corporate Governance Code, alongside evolving societal expectations – especially in respect of diversity and inclusion (D&I) and social equality – have created a clear momentum for directors to increase oversight over workforce-related matters.
  • That factors, including the revised Stewardship Code, changing societal expectations and government action have led to investors sharpening and expanding their focus on D&I and remuneration, and being much more attuned to the ethical and business case for diversity.
  • Considerations to help Boards accelerate their progress on D&I, consistent with the recommendations published in July 2021 by the FRC.

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