The House of Commons Business, Innovation and Skills (BIS) Select Committee has launched an inquiry into corporate governance and directors’ remuneration. In particular, the inquiry will review directors’ duties, executive pay and the composition of boards, including worker representation and gender balance in executive positions.

Specific issues the Committee intends to consider include:

• Directors’ duties – whether company law is sufficiently clear on the roles of directors and non-executive directors, whether the duty to promote the long-term success of the company is clear and enforceable and how the interests of shareholders and employees are best balanced.
• Executive pay – whether the current framework for controlling executive pay is effective, how executive pay should take into account a company’s long-term performance and if there is any evidence that executive pay is too high.
• Board composition – how greater diversity of board membership should be achieved and whether there should be worker representation on boards and/or remuneration committees, and if so in what form.

The Committee has asked for written submissions to provide evidence for the review to be made by 26 October 2016.

The inquiry terms of reference are available on the Parliament.uk website.