Governance has emerged as the signature risk of the post-financial crisis era in Europe. The great recession brought in its wake costly bank failures, bailouts, and write-offs of bad debts, followed by tense debt renegotiations in several nations. These events severely eroded investor confidence. More recently, hotly contested “say on pay” votes, legal and regulatory controversies, and outright scandals have also taken their toll. To navigate this uncertain, fast-changing environment, issuers and investors alike need accurate, comprehensive governance data, both quantitative and qualitative, to develop clear, timely, and actionable insights into the governance of European corporations.
This article, originally published in 2016, is part of the Broadridge Insights series.
Executive pay will be avoided in the new corporate governance code for private companies, according to the businessman leading the project.
UK watchdog tells commission it will be monitoring the quality of explanations from companies when they fail to comply with corporate governance code.
The revamped governance code and guidance amount to a demand for cultural change in the boardroom. But how should boards change in order to better manage the risks associated with poor corporate culture?