PWC: New guidance on risk-adjusting proposed

04/03/2010 PWC: New guidance on risk-adjusting proposed

Non-financial companies may face new regulations on risk-adjusting executive rewards if proposed changes to the remuneration section of the UK Corporate Governance Code come into effect, it has been claimed.

PricewaterhouseCoopers reward partner Tom Gosling noted that a "tailored approach that aligns executive reward with strategy" is good news.

He stated that he is not surprised that claw-back may be introduced for exceptional circumstances.

The biggest development is that "performance criteria should be risk-adjusted and aligned with the company's risk policies," Mr Gosling said.

He observed that the Financial Reporting Council is right to learn lessons from the recession, as he acknowledged that "developing a workable approach to take risk into account" will be the biggest challenge that many organisations face.

It was recently announced that risk jobs are now part of the "hottest" sector, with the Economist reporting that some firms are in the process of doubling their current staffing levels.

Search for risk jobs with Integral, the experts in risk recruitment.
ADNFCR-1739-ID-19651307-ADNFCR