Newly minted British PM Theresa May Takes Aim at Corporate Governance, Proposes Reform

British Prime Minister Theresa May has been in office for less than two weeks, but she’s already rattled the country’s business community with a series of proposed changes to how companies are managed. Ms. May has taken particular aim at corporate governance and proposed two significant reforms: requiring companies to add employee representatives to boards, and make annual shareholder votes on executive pay binding. The remarks caught the business community off guard and Ms. May has yet to flesh out any details. But her comments have prompted a lively debate about whether her ideas can actually work. Unions in Britain have been advocating employee representatives on boards for years, saying the current system is outdated and puts too much emphasis on shareholder interests. But only one British company has adopted the idea.