The Government strongly welcomes Sir David Walker’s proposals for the reform of the corporate governance of UK banks and other financial institutions.
Lord Myners, the Financial Services Secretary to the Treasury said:
“Corporate governance failures were a major contributor to the financial crisis. The responsibility for the actions that led the global financial sector to the brink of collapse ultimately rests with the people who sat around the bank board tables and those who approved their appointment.
“The weaknesses in board practice, risk management, control of remuneration and exercise of ownership rights identified by the Review must be addressed.
“Board members in future must ask tougher questions of their chief executives. They need to spend far more time fulfilling their responsibilities. Shareholders must ensure that directors have the skills necessary for the tasks required.
“Sir David has put forward detailed and comprehensive proposals, setting a new benchmark for best practice both nationally and internationally.
“The consultation process now needs to look not just at the proposals, but also how to implement and, if necessary, take them further, including their applicability to non-financial sector firms.
“International adoption of similar measures would also reinforce corporate governance and contribute significantly to financial stability. Therefore, the Government will take steps to ensure that proposals to improve corporate governance are considered internationally.”