‘Chairman’ retired from UK boardroom code – Financial News

The term ‘chairman’ has been dropped from the UK Corporate Governance Code for the first time in 26 years and replaced with ‘chair’ in a landmark move for equality in the workplace.The watershed change appears in the 2018 edition of the influential guidelines, published today, and is part of a conscious decision to retire the moniker of ‘chairman’ in order to encourage more women to enter the boardroom.The move means that the famous first stipulation of the governance code — that “the roles of chairman and chief executive should not be exercised by the same individual”, which dates from the Cadbury report in 1992 — has been updated for the 21st century to “chair and chief executive”….The 2018 update to the UK Corporate Governance Code also contained several new provisions, including “reporting on the gender balance of senior management” and a recommendation that board chairs be replaced after nine years. However, this can be relaxed if a senior female director is in line for a promotion to chair, Styles said.

The 2018 Code additionally includes new provisions for whistleblowers, and implements a government recommendation that workers be given a greater say in the running of companies, setting out three options for doing so — a worker representative on the board; an advisory panel; or a nominated director with responsibility for communicating with the workforce.

Source: ‘Chairman’ retired from UK boardroom code – Financial News

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