Consultation outcome

A long-term focus for corporate Britain: call for evidence

This consultation has concluded

Original consultation

This consultation ran from to


Review into corporate governance and economic short-termism.


Consultation description

Review seeking views on whether there are failures in corporate governance and the markets. Aims to investigate issues including:

  • the problems of short-termism
  • investor engagement
  • directors’ remuneration
  • the economic case for takeovers

The review aims to establish whether there are further issues affecting the functioning of capital markets and, if so, what the causes are. It considers the role of directors and shareholders and asked fundamental questions about shareholder engagement, market short-termism and the functioning of the investment chain in the UK. It also considers directors’ remuneration and the economic case for takeovers.

The responses to the call for evidence identified a number of issues with short-termism in UK equity markets and of some agency problems in the investment chain. On that basis the Secretary of State asked Professor John Kay to conduct an independent review to examine investment in UK equity markets and its impact on the long-term performance and governance of UK quoted companies.