Change at the top among the UK corporate governance elite.
Peter Montagnon, the cheerleader-in-chief for UK investors is leaving the ABI to take up a new position at the FRC, the corporate governance policeman. Montagnon, who has spent ten years at the Association of British Insurers, is taking up his new appointment at a critical juncture for corporate governance in the UK industry.
Accused by critics of being comatose through most of the credit crisis, UK shareholders have started flexing their muscles by openly opposing company boards on key issues. They are now working towards tackling company boards under the auspices of a new improved Institutional Shareholders Committee. You can read the story here.
At the Financial Reporting Council, Montagnon – a former Reuters journalist - will provide “perspective and input” into the development of the UK coroporate governance code and the new stewardship code for UK investors. The stewardship code was recommended by City grandee David Walker in his report on strengthening corporate governance in the UK last year.
Montagnon’s appointment at the FRC looks like yet another step in bolstering the governance body as it steps up pressure on investors and boards alike.