Walker set to give go-ahead for tighter rules for directors

SIR David Walker will put forward plans for a major renovation of boardroom culture among UK financial institutions today, with the publication of his review of corporate governance.<br /><br />Walker is expected to set out a series of radical proposals, which will include subjecting company directors to mandatory annual elections and the introduction of powerful risk committees strong enough to resist pressure from executives.<br /><br />The City grandee, called in by the government to overhaul corporate governance, may also call for shareholder votes on remuneration reports to become binding, rather than simply advisory, in a bid to increase investor influence on corporate strategy.<br /><br />Walker is understood to believe that the dislocation between shareholders and the companies in which they invest is a key factor contributing to the severity of the financial crisis. His proposals will also include forcing non-executive directors to receive formal training in the activities of the companies they represent, while they will be discouraged from taking too many boardroom roles.<br /><br />The government is set to use Walker&rsquo;s report to feed into proposals to curb risky pay policies and beef up risk management.