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.
Efforts to improve global reporting on human capital management represents a major shift in corporate governance, and offers companies a competitive advantage that no board should ignore.
Theresa May's proposals on governance have been described as "extraordinary" in some quarters while other commentators predict fierce resistance. But one thing is certain: the breadth and depth of her suggested reforms have caught UK business by surprise.