Reaction to the new remuneration disclosure requirements set out by the Comissão de Valores Mobiliários (Securities and Exchange Commission of Brazil, or “CVM”), have been mixed, ranging from full and immediate compliance to complete revolt – with some companies filing lawsuits challenging the legality of the new provisions. CVM, the regulatory body for the Brazilian […]
Read MoreAs Western economies tie themselves in knots trying to protect financial markets from future harm and arguing about what role governance plays in that process, commentators have been struggling to define governance and who should be responsible for it. We found this very apposite quote from New Zealand’s Business Day blog “Stirring the Pot” which was discussing a Massey University governance […]
Read MoreThe activist shareholder Guy Wyser-Pratte has challenged the outcome of the AGM of Lagardère, held on 27 April, and requested the French market regulator, the AMF, to verify the procedures for the transmission of the votes submitted to the meeting. In a letter dated 8 June 2010, Wyser-Pratte states that he has serious doubts about […]
Read MoreAs shareholders are asked to get more involved with executive pay monitoring, the problem for many investors is how to judge what is reasonable – traditional bonus plans have resulted in plans which are not aligned with performance. Basing bonuses on stock prices exposes them to external factors, including irrational behaviour that can also influence stock prices. […]
Read MoreNew research from Manifest’s US partner ProxyGovernance Inc reveals just how rapidly support is growing for E&S votes at US companies. For the first time, E&S resolutions have represented the largest portion of shareholder proposals. Although the number of resolutions has remained below 200, those resolutions with more than 30% support have seen an 8 fold […]
Read MoreThe Financial Reporting Council (FRC) has published the responses to its recent consultation on the UK’s corporate governance code. A total of 117 responses have been made available, of which 37 are from quoted companies directly and 14 from investors directly. The overwhelming majority have been sent from either trade association or professional groups. Overseas […]
Read MoreAs Prudential has recently found to its cost, it’s generally worth while keeping shareholders in the loop. Whereas UK and European companies are generally welcoming of investor dialogue to the extent it is enshrined in national governance codes, any meaningful dialogue with US-listed companies has been fraught with difficulties. For the past decade directors and […]
Read MoreShareholders don’t like it, nor do the regulators. It’s expressively forbidden to be included in appraisals. Unfortunately, evidence uncovered by the Financial Reporting Council’s Audit Inspection Unit (AIU) shows that the controversial practice of selling non-audit services to audit clients is alive and well, threatening the independence of audits. At Deloitte audit directors and managers are […]
Read MoreCalPERS and 20 other public pension plans have written to key US lawmakers urging them to keep corporate governance provisions in the final version of a proposed financial regulations reform bill. The US House of Representatives and Senate have each passed versions of reform legislation and now must now merge the two bills. Both measures include […]
Read More