On 27 October 2015, the FRC published a discussion paper on UK board succession planning, focusing on board succession for executives and non-executives of those companies to which the UK Corporate Governance Code applies. The FRC is requesting comments by 29 January 2016.
The FRC anticipates that feedback will contribute to six key areas:
- Business strategy and culture: The FRC seeks views on how succession planning can be linked to the development of business strategy and company culture, and how that link can be reported on in practice;
- The Nomination Committee: The FRC is requesting opinions on whether the Code is sufficiently clear on the role and responsibility of the committee;
- Board evaluation: The FRC seeks suggestions of practical changes that could help ensure that boards fully consider succession planning within the annual evaluation process;
- The pipeline for executives and non-executives: The FRC wants to gain more information on how companies review their internal talent;
- Diversity: The FRC is seeking ideas on how a succession plan could incorporate and deliver diversity objectives; and
- The role of institutional investors: The FRC seeks views on the experience that companies or investors may have had in terms of engagement about the introduction of new talent to a board.
This discussion paper can be found at:
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