News
Grant Thornton have published their annual corporate governance review. This is a very useful document for those with a stake in good corporate governance. The key findings:
• Half of all FTSE 350 companies complied with the Combined Code, with another 10% doing so for part of the year.
• Seven FTSE 350 businesses have been in full compliance with the Combined Code throughout the ten years of this review.
• Less than one in ten directors are women, with half of all Mid 250 boards exclusively male. 72% don’t disclose their gender policy.
• Seventy per cent of FTSE 350 companies have introduced annual re-election of directors in anticipation of the new UK Corporate Governance Code.
• One in four companies held externally facilitated board evaluations, with 17% more planning a review in the coming year.
• More than half of chairmen’s statements do not discuss governance and only 10% offer real insight into their governance culture.
• Only five companies changed their external auditor and the average tenure of auditor is 34 years.
• Just 25% of companies give real insight into how they monitor and maintain effective oversight of their internal control systems.
• Twenty seven per cent of companies already outline their business model, as required in the new UK Corporate Governance Code.
The report opens with Chris Hodge, Head of Corporate Governance, Financial Reporting Council detailing the great strides corporate reporting has made in recent years such as the lack of audit committees and the frequency of one person as Chairman and CEO whilst commenting: "It is no coincidence that such strides have been achieved within a voluntary framework. I believe the
aspirational targets of UK governance codes encourage greater achievement, whereas regulation alone leads to the bare attainment of minimum standards" which is a position the Society endorses.
Please do try to find the time to read this revealing document.
Published: 30 November, 2011