The results highlight a number of issues for review that are linked to the promotion of the long-term sustainable success of listed businesses.
Key findings include:
83% of companies surveyed had revised their corporate governance model in the last financial year mainly as a result of changes in the corporate governance code they were applying or in European Union or national law. Of companies not revising their code, family- owned companies were in the majority.
76% of board members considered corporate governance was of interest to their shareholders though almost a quarter (the remaining 24%) did not believe their shareholders were really interested in governance matters. The main topics discussed with investors were remuneration (40%) and the nomination of board members (40%).
- 59% of companies surveyed had made use of the flexibility provided by the ‘comply or explain’ approach. Just under half of boards (48%) think additional guidance on ‘comply or explain’ would be helpful to promote high quality explanations, offer clear guidelines or to provide more information on best practice
Commenting on the survey report, Lutgart Van den Berghe, Board member of ecoDa said ‘Board members, investors and regulators all have their part to play in fostering an ecosystem that promotes long-term sustainable success for the benefit of all stakeholders in listed companies and wider society. Targeting full compliance will not, in itself, raise the bar higher for effective corporate governance.”
Anthony Carey, Board Practice Partner at Mazars added ‘More emphasis should be placed on how boards are operating in the real world and not just on paper. Building an engaged board with high levels of both support and challenge for the executive team requires constant attention but is crucial if the businesses the boards are leading are to achieve their full potential.”’
Download the full report below.