Key highlights
Where do you stand?
The principle of the thing.
Just 32% discuss the application of the Code principles in a meaningful way.
Despite an increase in declared compliance with the Code there’s a lot of work to be done to demonstrate companies are engaging with the new focus in a meaningful way.
Why do you exist?
That’s the question emphasised in the new Code. The ability to clearly articulate an answer, to establish a purpose, will be vital to setting a strategy for delivering to it.
Only half of businesses clearly articulate their purpose beyond generating profit.
The current climate
Couple that with only a staggering 2% using environmental measures in long-term incentive plans and you get a picture at odds with investors desire for rigorous data to support their investment decisions.
Just 20% of companies see environmental risks as a principal threat to strategy.
Stay ahead of the curve
Download our review
A question of culture.
of the FTSE 350 now provide good or detailed accounts of their culture.
An improvement (up from 33%), but with the Code emphasising the importance of culture in a strong governance framework there’s more to be done.
Engage!
Shareholder engagement increases for the first time in four years.
now provide good or detailed disclosures of shareholder engagement including more evidence of face to face contacts.
Think about the future.
With a commitment to diversity and inclusion and the need for greater agility in turbulent times this lack of insight on how senior management is developed is a cause for concern.
of businesses give little insight into the succession planning, 63 have had their chair on the board for more than 9 years.
The issue of trust.
Remuneration will always be a point of contention, but it’s also part of the bigger picture and improved transparency and quality of reporting across the board will help contextualise remuneration properly.
Only 15% clearly explain how executive remuneration is linked to strategy and KPIs.
Find out the latest best practice trends in corporate governance
Stay ahead of the curve
Find out the latest best practice trends in corporate governance
Download our review