Asset manager urges separation of chair and CEO roles
A survey by Union Investment has revealed that 14 members of the Euro Stoxx 50 continue to combine chair and CEO roles, including high-profile companies such as luxury goods brand LVMH.
Image: Oliver Hoffmann/Shutterstock
A major investment manager has called for companies to separate the roles of CEO and chair, and improve remuneration disclosure, after surveying the top companies across Europe.
Union Investment, the asset management arm of Germany’s DZ Bank, found that seven of the 49 members of the Stoxx Europe 50 continue to combine chair and CEO roles. They include luxury goods brand LVMH, telecoms firm Telefónica and construction giant Vinci.
Vanda Heinen, an ESG analyst with Union Investment, said: “We see this as a critical issue. We ask for a high degree of independence of the non-executives as a whole and the executives. But if there is
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Section 172 reporting is an opportunity to increase transparency
New S172 reporting requirements should spur firms to review how board decisions are reached, and push boards to learn more about the views of stakeholders.
-
Real deal: the advantages of being (seen as) authentic at work
The pressure is on for organisations to allow individuals to be more authentic in the workplace. What exactly is authenticity—and how do we move towards it?
-
New UK regulator should be freed to focus on audit
There are fears that the Audit, Reporting and Governance Authority (ARGA) will foster a formulaic and legalistic interpretation of the UK Corporate Governance Code.
