Audit & Risk

FTSE 350 reporting leaves a lot to be desired

Three-quarters of FTSE 350 companies fail to make a direct link between business performance and how management is rewarded, according to recent survey.

in News.

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A survey of the UK’s biggest companies conducted by by professional services firm PwC shows wide variances in corporate reporting quality. For example, only a third (34 per cent) use their governance report to explain clearly what the board and its committees have focused on during the year, while only 28 per cent use strategy as the base for their reporting.

PwC found that only a half of the 350 reports gave what the firms described as “meaningful insight in what really makes their business tick”.

According to the firm, the overall picture indicated a slight improvement year-on-year in the effectiveness of reporting, with the most excellent reporting not necessarily emerging from the largest companies, as the FTSE 250 demonstrated the strongest innovation.

"For many companies, there may not seem to be any quick fixes to shortcomings in their reporting," says PwC corporate reporting partner Charles Bowman. "We know many have found articulating their business model difficult. However, a start-up company lives or dies by how well they can articulate their business model and what they stand for – it seems that some larger companies have lost sight of this.”

He adds: “The best reporters aren't doing this out of a sense of altruism. They do it to communicate effectively with stakeholders and retain their trust.”

Click here to read the research in full.

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