Just under half (49 per cent) of FTSE 350 companies are fully compliant with the UK’s Corporate Governance Code, with pension contributions being the most common area of non-compliance, according to research from Thomson Reuters Practical Law.

The group’s study revealed that 30 per cent of companies reported failing to meet the code’s requirements by paying executive directors pension contributions that are not aligned with the average pension contribution for employees.

Under the code, companies are expected to pay the same percentage salary in pension contributions to their entire workforce, including board executives.

Allowing a chair to remain in position for more than nine years was the second highest area of non-compliance with the code, as the study found 12 per cent of the FTSE 350 were non-compliant in this area, a moderate improvement from the 14 per cent that were non-compliant in 2022.

Commenting on the findings, Thomson Reuters Practical Law senior editor, Amanda Cantwell, said, “Although companies may have justifiable reasons for non-compliance, levels of compliance with the code are rising, which should mean improved corporate governance for FTSE 350 companies.

“The improvement in adherence with corporate governance principles shows a positive cultural change in British corporate governance five years on from the collapse of Carillion, which has highlighted the importance of corporate governance regulation.

Meeting high standards of corporate governance set by the code can foster an environment of trust and accountability within the UK’s biggest listed companies.”

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