City code for top chiefs 'needs revamp'

The Financial Reporting Council which oversees the code has said such companies as British Airways and Marks & Spencer want the City rulebook's core "comply or explain" principle re-examined.

The principle was a central part of the late Sir Derek Higgs boardroom reforms and puts the onus on companies to say why they had breached the guidelines.

Institutional shareholders are said to be getting more hard line, demanding ever more transparent explanations for non-compliance.