UK bosses face tougher penalties for financial reporting breaches after the accounting and corporate governance watchdog called on the government for power to crack down on ill practices.
The Financial Reporting Council (FRC) has submitted proposals to the government, asking for authority to punish executives of listed companies who break financial reporting rules.
The British regulator currently does not have the right to fine boardroom directors, with its jurisdiction limited to taking action against members of professional bodies.
The proposal comes in response to a government discussion paper on reforming corporate governance.
The FRC will start a public consultation on its proposals later this year.
The FRC also said it will undertake a fundamental review of the 25-year-old code of practice for companies. It will begin a consultation in the summer on the codes, which are voluntary and used by shareholders to hold companies into account over such aspects as pay and boardroom composition.
Businesses shamed for underpaying staff...
The watchdog's call for a crack down on boardroom directors came as the government named and shamed a record 350 firms for underpaying employees.
Debenhams was outed as the most prolific offender on the list, failing to pay £134,894.83 to some 11,858 workers.
The government last April introduced rules requiring companies to pay a national living wage of at least £7.20 an hour for those aged over 25 and £6.70 to workers between 21 and 24.
Businesses who failed to abide by the rules were forced to return £995,233 to workers and had to pay penalties totalling £800,000 to Her Majesty's Revenue & Customs (HMRC).
Excuses for underpaying workers including cutting worker’s wages to fund their Christmas party and making staff pay for their own uniforms.
Debenhams cited a “technical error in its payroll calculations” as its reason for underpaying staff. The retailer said the error led to an average underpayment of about £10 per person, which had been repaid immediately after a HRMC unveiled the mistake.
Waitrose voted top supermarket…
In more positive news trending elsewhere, a survey on customer satisfaction revealed Waitrose was voted the UK’s best supermarket.
Waitrose narrowly beat Marks & Spencer (M&S) for the top spot in the annual poll by Which?, which said the grocer won over shoppers for its high levels of customer service.
The survey, which asked more than 7,000 shoppers to rate stores they had shopped in the previous six months, showed Waitrose was the only supermarket to get five stars for staff availability and helpfulness.
Waitrose and M&S (LON:MKS) scored points for store appearance and quality of own-label and fresh products.
Iceland came out on top in the online category for its convenient delivery slots, no substitution policy and friendly drivers.
“With concerns over rising prices, the competition among supermarkets is fiercer than ever,” said Richard Headland, Which? magazine editor. “While value for money remains a top priority, in-store appearance and the availability of quality and fresh products can also go a long way to satisfying shoppers’ needs.”