Board independence revealed as key issue for investors in 2020
Nearly two-thirds of investors say proxy adviser ISS should recommend voting against the election or re-election of a board chair if they are not “independent”, regardless of the overall independence of the board.
Image: ImageFlow/Shutterstock
The independence of company chairs in Europe could figure heavily in the deliberations of one of the chief proxy advisers as it formulates its policies for the 2020 season of annual meetings.
Institutional Shareholder Services (ISS) found that nearly two-thirds (62%) of investors who responded to a survey believe the proxy adviser should recommend voting against the election or re-election of a board chair if they are not “independent”, regardless of the overall independence of their board.
That said, a majority of non-investors (company directors and corporate advisers) believe ISS should stick with its current policy of only recom
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
-
Thomas Cook suffers pay revolt by shareholders
A third of Thomas Cook shareholders vote against new incentive scheme for executives.
-
Businesses ‘vulnerable’ if they fail to confront climate risk
Academics tell climate change disclosure task force business leaders need to take the Paris climate change agreement seriously or increase the risks to their business models.
-
Rapid technological change ‘is disrupting leadership’
The current pace of technological change is creating a level of complexity that is overtaking our ability to process and make effective decisions, says a leadership expert.
