Companies told to link bosses' pay to performance

Some of the country's biggest firms have been told they should change the way they pay chief execs

UK currency
(Image credit: 2008 Getty Images)

The UK's 916 premium-listed companies are being asked to change the way they pay their chief executives. They have been told to link pay, including bonuses, to long-term performance – and even to take it back if businesses fail to be profitable.

The changes come in biennial guidelines issued by the Financial Reporting Council (FRC), known as the UK Corporate Governance Code. They are enforced on a 'comply or explain' policy, meaning firms must follow suit or outline what alternative measures they have taken to ensure the same results.

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