The row in Germany over the controversial bonus payment to Klaus Esser, the former Mannesmann boss, shows just how urgent is the need to update corporate governance practices in the Federal Republic.

The point will not be missed on the new commission set up recently by the government to draw up an officially-backed code of practice. Headed by Gerhard Cromme, chief executive of ThyseenKrupp, it includes leading corporate governance reformers such as Christian Strenger of DWS and gets down to business next week.