Higgs firm on boardroom shake-up

DEREK Higgs today insisted his controversial plans to shake up British boardrooms would not be watered down as he defended his 'commonsense' measures.

The former investment banker, who has endured a storm of criticism from business for his report on corporate governance, said 90% of his ideas would make it through to the revised draft of a new combined code of practice to be published in coming weeks.

Speaking at the Institute of Chartered Accountants' annual conference in London, he said his measures - including the requirement that half a board should be made up of independent directors - were designed to be evolutionary, not revolutionary.

He said: 'There's a meeting on 23 July of the Financial Reporting Council about the new code and 90% of my proposals will be there. I believe the important ideas will come through.'

The battering shareholders have given directors over pay is forcing many boardrooms to rip up their policies on remuneration, according to a report out today from consultants Watson Wyatt. Around half of FTSE 350 chairmen said they were now reviewing their approach to executive pay.