Top executives at companies hit by accounting scandals could lose their bonuses under U.K. proposals for beefed-up regulation after a wave of corporate collapses including Carillion Plc and travel firm Thomas Cook Group Plc.
The government proposed creating a new regulator with the power to wield a range of sanctions, including reprimands, fines and even temporary bans from directorships, signaling it’s serious about cracking down on questionable accounting practices.
The government said, the sanctions shouldn’t apply only to directors who happen to be qualified accountants, but also chief executives, finance chiefs, board chairs and audit committee chairs.