UK: Walker review of bank corporate governance - terms of reference widened

In a speech delivered earlier this week at an Association of Investment Companies conference, Lord Myners (the Financial Services Secretary to the Treasury) announced that the terms of reference of the Walker review of bank corporate governance had been widened to include all financial institutions. Lord Myners also reflected on some of the issues which he hoped the Walker review would consider and expressed the view that the Combined Code should give a higher priority to shareholder engagement. With regard to remuneration he observed:

I am hoping Sir David Walker will also ask questions about the Remuneration Report to shareholders - should it continue to be advisory, or should it have some mandatory element? Should benefit consultants be solely accountable to the board, or perhaps have a duty to report to shareholders against a template agreed by shareholders that would identify critical scheme features, potential risks and provide an assessment of economic utility".