Large private companies continue to favour Wates Principles

Large private companies continue to favour Wates Principles

Today the Financial Reporting Council published its second assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles.

The research, conducted by the University of Essex, shows that the Wates Principles continue to be the most widely adopted corporate governance code among large private companies.

Of the 1,815 large private companies in scope of the research, 547 (30%) chose to apply the Wates Corporate Governance Principles in 2021/22, with a combined annual turnover totalling more than £850 billion.

Sir James Wates CBE, said:
“I’m once again encouraged to see that more large private companies are choosing to report against the Wates Principles than any other option.”

“The improvement in the reporting quality we’ve seen in today’s report, while good news, shouldn’t distract companies from the need to reduce boilerplate reporting, which remains a primary concern. I urge boards to reflect on today’s report with open minds ahead of their next reporting cycles.”

Mark Babington, FRC’s Executive Director of Regulatory Standards, said:
“The popularity of the Wates Principles continues amongst private companies, who I hope put this report to good use in their efforts to produce meaningful and company specific reports.

“The research highlights the need for increased transparency and accountability among large private companies, particularly as they are a driver of growth in the UK and have a significant impact on the economy and on wider stakeholders.”

While there were some improvements in certain disclosure areas compared to 2019/20, companies continue to struggle with providing meaningful disclosures around key areas. These include defining company purpose, connecting that purpose to strategy, culture and values, and explaining how stakeholder engagement impacts board decision-making.

The report also suggests there is an over-reliance on “boilerplate” disclosures being used rather than disclosures that provide company-specific context. High levels of similarity were found between the corporate governance statements of different companies, and also between reports by the same company in different years.

Click here to download and read the full FRC report and FRC Press Release: “Large private companies continue to favour Wates Principles”.

Listen to the FRC’s “In Conversation” Podcast
The FRC’s latest In Conversation podcast episode features Sir James Wates OBE, Chair of Family Business UK, Kate O’Neill, Director of Stakeholder Engagement & Corporate Affairs, and Maureen Beresford, Acting Director of Corporate Governance and Stewardship at the FRC.

Join the panel as they explore today’s report and discuss the Wates Principles’ flexibility, challenges in meaningful disclosure, and the importance of stakeholder engagement.

Click here to access and listen to the Podcast.

Steering the Family Business Forward: A SaxBam Interview with Neil Davy, CEO of Family Business UK

Steering the Family Business Forward: A Sax Bam Interview with Neil Davy, CEO of Family Business UK

Family Business UK (FBUK) CEO Neil Davy was delighted, earlier this month to be interview by Kate Ludlow, Managing Partner at Executive Search and Leadership specialists, and FBUK corporate partner,  Saxton Bampfylde.

Neil is the fourth interview in the series ‘Steering the Family Business bringing views from leaders across family business in the UK – family and non-family, executive and non executive. With the intention that the series will encourage shared learning whilst increasing awareness of this vital part of our business fabric.

Neil’ shared his reflections on some of the potential new opportunities and ambitions for family owned businesses, particularly in the context of the lection of a new Government.

Family businesses are integral to UK society and economy and play an enormous role in so many different industries every day. The business model requires leadership that balances entrepreneurship with stewardship, risk-taking with longevity: not an easy combination.

At the very core of that is the focus on the people and a genuine commitment to culture and values, which cannot be underestimated.

Read the interview in full, here.

Saxton Bampfylde recently became a carefully selected corporate partner of FBUK, joining a select and top quality group of advisory partners.

Click here, to find out more about Saxton Bampfylde’s offer to Family Businesses.