Business Ethics and Corporate Governance, Second Edition

THE GREENBURY COMMITTEE, 1995

This committee was set up in January 1995 to identify good practices by the Confederation of British Industry (CBI) in determining directors’ remuneration and to prepare a code of such practices for use by public limited companies of the United Kingdom.²

The committee

• aimed to provide an answer to the general concerns about the accountability and level of directors’ pay;
• argued against statutory control and for strengthening accountability by the proper allocation of responsibility for determining directors’ remuneration, the proper reporting to shareholders and greater transparency in the process; and
• produced the Greenbury Code of Best Practice which was divided into the following four sections:
  1. Remuneration ...