The following is an extract from the Sunday Times of 8 March 2009:

Marc Jobling, the ABl’s assistant director of investment affairs said: ‘Pay consultants are a big contributor to the problems around executive pay. We have heard of some who admit that they work for both management and independent directors — which is a clear conflict of interest and not acceptable. We believe that remuneration consultants, whose livelihood appears to depend on pushing an ever-upward spiral in executive pay, should be obliged to develop a code of ethics.’

Discuss the types of issues which should be included in such a code of ethics and how effective they would be in achieving good corporate governance.