Governance improves at US companies

Link: Combined code harms competitiveness, say FDs

Despite intense investor focus on corporate governance, such as the high-profile campaign against Safeway directors, this year’s proxy season seemed to be the least contentious in recent history, the study said.

Indeed the report said that a new era has dawned, ‘in which corporate governance has moved from a back-office compliance obligation to a front-office business driver’.

‘For all the sound and fury of this year’s proxy season, some of the most significant developments told a subtler and far different story. To an impressive degree, constructive dialogue between shareholders and corporations replaced confrontation,’ according to the study by Institutional Shareholder Services.

The news comes in contrast to a UK study out this week stating that British executives remain disgruntled about the recent reforms to UK corporate governance.

An emphatic 72% of finance directors and chairman of listed companies believe they’re spending too much time on corporate governance at the expense of wealth generation, according to ACCA’s new research.

Related reading