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.
Annual index reveals that the retailing giant is trailing the rest of the FTSE100 when it comes to governance, while audit and risk (external accountability) emerge as the most important factors in measuring governance performance.
To enhance the benefits of diversity for corporate social performance, efforts should be directed at holding boards more accountable to diverse stakeholders and improving the status of women, says Kris Byron