A report issued by a United Kingdom government commission advises British financial leaders to disclose their pay to the public, in addition to other policy suggestions, according to the New York Times. The 142-page report also addresses issues pertaining to the avoidance of future financial crises, including risk controls and compensation oversight.
Among other points of advice, the report suggests that companies disclose the pay of those executives whose compensation exceeds that of the companies’ directors. Such disclosure would not include names.
The report comes from Sir David Walker, a senior Morgan Stanley advisor, who says that “these proposals are designed to improve the professionalism and diligence of bank boards, increasing the importance of challenge in the board environment.”
“If this means that boards operate in a somewhat less collegial way than in the past,” continues Walker, “that will be a small price to pay for better governance.”