The latest Resources Global governance index, a study into corporate standards, has shown that FTSE 100 companies have a significantly higher standard of corporate governance than their non-UK based counterparts in Europe. Robin Johnson, partner at international law firm Eversheds, comments:
“UK governance issues have remained at the forefront of regulators’ minds over the last three years, though the Cadbury Committee rules of the 90s have survived the test of time. Their focus has paid off with the UK’s new corporate governance code together with its fledging stewardship code being seen across the world as the blueprint for other markets. There is global respect for the code, which also includes the positive discrimination rules for gender and diversity at board level.
“A particularly well thought of aspect of the UK’s code is the ‘comply or explain’ approach, which UK regulators have adopted towards its implementation and brings a new sense of clarity to the process.
“However, despite the success of the UK model, the SEC is also reviewing corporate governance issues and the new proxy access rules they are proposing are triggering much debate. A globally consistent approach to corporate governance would be welcomed by all.”