UK companies need to do more to improve public trust says FRC

FRC Paul George

The Financial Reporting Council (FRC) has said it is ready to make further changes to the UK’s corporate governance code to reflect concerns about the role of companies within society and to improve public trust in its annual report, Developments in Corporate Governance and Stewardship 2016.… Read the rest

IIGCC appoints Peter Damgaard Jensen as chairman

Peter Damgaard Jensenof IIGCC

Peter Damgaard Jensen, chief executive of the large Danish pension fund manager PKA has become chairman of the Institutional Investors Group on Climate Change (IIGCC). Jensen took over from Donald McDonald, who has also retired from his post as a BT Pensions trustee director, at the beginning of the year.… Read the rest

US updates ESG & voting guidance for ERISA funds

Phyllis Borzl - DoL

US regulators have responded to concerns that employee pension plans have not been exercising their shareholder rights by issuing updated guidance on proxy voting for 2017.

The Department of Labor’s Employee Benefits Security Administration (EBSA) agency said that it is has long believed that it is important for plan administrators to know what their responsibilities are when they vote proxies on those shares or exercise other shareholder rights.… Read the rest

Philippines adopts revised Corporate Governance Code

A revised corporate governance code came into effect on 1st January 2017 in the Philippines. The code has been developed by the IFC, a member of the World Bank Group, and the Philippine Securities and Exchange Commission (SEC) with the aim of improving the competitiveness of listed companies in the country and their ability to attract foreign investment.… Read the rest

Sports Direct’s independent shareholders remain unconvinced

Sports Direct Logo

A majority of Sports Direct independent shareholders remain sceptical of governance improvements at the troubled retailer and last week voted against the re-election of its chairman, Keith Hellawell. Under UK listing rules, the retailer had been forced to hold a general meeting to vote again on his reappointment after most independent shareholders voted against him at the company’s AGM last September.… Read the rest

CFA UK-backed study reveals continuing rising CEO pay

Research commissioned by CFA UK has examined the alignment of chief executive (CEO) pay and company value creation between 2003-2014/15 and found that total pay for the median CEO increased by 82% in real terms over the period. However, the median FTSE-350 company generated little in the way of a meaningful economic profit over the period 2003-2009 , and although performance improved from 2010 onwards the median firm generated less than 1% economic return on invested capital.… Read the rest

OECD Consults on Guidance to Support Firms Implement its Guidelines for MNEs

The Organisation for Economic Co-operation and Development (OECD) is consulting on general Due Diligence Guidance for Responsible Business Conduct and supplemental advice to provide practical support to companies on the implementation of the OECD Guidelines for Multinational Enterprises.

This general guidance builds on the sectoral guidance already published or being developed by the OECD.… Read the rest

Dimon takes chair of governance hawks, BRT

Jamie Dimon

As US Republicans accelerate their plans to dismantle much of the Dodd Frank regulatory framework, Jamie Dimon, chairman and chief executive (CEO) of JPMorgan Chase, has been appointed as the next chairman of the US  issuer lobby, Business Roundtable (BRT).

BRT’s members are the chief executives of the largest American companies; together with the US Chamber of Commerce, BRT has actively campaigned to roll back shareholder rights and reduce governance standards.… Read the rest

Gender pay gap reporting regulations go ahead in UK

Gender pay gap reporting will go ahead in the UK after the government published its final pay gap reporting regulations and its response to the consultation on the requirements. The government said it remains committed to achieving legislative approval by Parliament so that they can enter into force in April 2017.… Read the rest

Financial Stability Board taskforce consults on climate-related disclosures

The Financial Stability Board’s Task Force on Climate-related Financial Disclosures has published a consultation for its recommendations on voluntary, climate-related disclosures to be included as part of mainstream financial filings. The task force said its recommendations will help organisations identify and disclose information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities.… Read the rest

IOSCO pushes on international accounting standards and benchmarks

ioscologo

The International Organization  of Securities Commissions (IOSCO), which represents global financial regulators, has published a statement on implementation of new accounting standards related to revenue, financial instruments, and leases.

The three new International Financial Reporting (IFRS) Standards, issued by the International Accounting Standards Board, are expected to significantly affect the financial statements of many issuers globally, IOSCO said, due to the breadth of their applicability.… Read the rest

CFA-UK calls for better company reports

New research from the CFA-UK, the membership association of financial analysts, highlights aspects of financial reporting in annual reports which investors feel need to be improved.

CFA-UK members were asked to rank the sections of annual reports by their usefulness.  … Read the rest