FTSE 350 companies fail to explain governance practice
One in ten chairman can explain how they embed governance culture
ONLY 43% of FTSE 350 companies refer to their governance practice in annual report statements, a new study has shown.
Grant Thornton’s corporate governance review also shows that only 10% of top company chairmen can explain how they embed an appropriate governance culture throughout their organisation. Under Financial Reporting Council guidance, chairmen are responsible for establishing good governance practice.
Simon Lowe, partner at Grant Thornton, said: “Clearly there remains an opportunity for chairmen to take personal ownership of the governance agenda. It is the chairman’s job to set the governance tone for the company which needs to be clearly and widely communicated so as to permeate throughout the business.”
The report also shows that only 10% of companies in the FTSE 350 have 25% female representation on their boards.