Managers being urged to maintain high standards

Chief executives of major companies "should be hung" if they fail to run their business ethically, said Tony Pidgley, managing director of the Berkeley Group, last week.

Pidgley said that as long as Berkeley's business practices are sound, with the group following solid principles, he "didn't care" whether the group's share price rose or fell, as his one focus was maintaining a high operating standard.

Pointing a finger towards the heads of blue chip companies who become slaves to share price at the expense of good management practices, he said: "They should fall on their sword, be sacked and receive no compensation. If I make such a mistake, I should pay the price.

"My job is to behave as custodian of our principles. The finance director's job is to ensure that I held up that custodianship - in other words to see that I am honest."

Pidgley's attack on poor corporate governance came as Berkeley, the urban regenerator and residential property developer, unveiled its latest annual results, showing a 15% increase in pre-tax profit to £196m (see Business on p13 for more).