UK: draft remuneration consultant code of conduct - ABI calls for greater disclosure

Today's Financial Times reports that the Association of British Insurers is calling for changes to the draft remuneration consultant code of conduct signed by Deloitte, Hay Group, Hewitt New Bridge Street, Kepler, Mercer, Towers Perrin and Watson Wyatt. The FT report states:

Sir David Walker, who has been asked to look at reforms to the way British banks are run, gave a tentative welcome to the code in his report on corporate governance in financial services, released last month. However, when it makes its official response to the Walker Review in the coming weeks, the ABI said it would call for a more aggressive stance. It wants boards to disclose publicly how much they spend on pay consultancy each year, as well as how much management spend on other services from the same firms. The draft code of conduct recommends that this information be given to the chair of the remuneration committee but not be published".

Note: a copy of the draft code is available as annex 11 in Sir David Walker's first report on corporate governance in UK banks and other financial industry entities.