Posts Tagged 'FTSE'

UK’s Top Boardrooms Look Set To Hit 25% Women Target

by Dina Medland for Forbes

Women now make up 23.5% of non-executive director positions on the boards of Britain’s top FTSE 100 listed companies. Just 17 more female appointments to these boards are needed to reach the 25% female target by end-2015 set by Lord Davies of Abersoch four years ago in his review for the UK government on the under-representation of women on boards.

“The rate of change that we have seen in FTSE 100 companies over the last four years has been remarkable. The voluntary approach is working, boards are getting fixed” Lord Davies will say at the launch of his report in London today.

“FTSE 100 boards have made enormous progress in the last four years, almost doubling female representation to just shy of 25 per cent.  We must celebrate this outstanding achievement and the change in culture that is taking hold at the heart of British business. The evidence is irrefutable: boards with a healthy female representation outperform their male-dominated rivals” Vince Cable, the UK Business Secretary who commissioned the Davies Review, will say today.

The authors of the Female FTSE Board Report 2015 who include Professor Susan Vinnicombe CBE, Dr Ruth Sealy and Dr Elena Doldor of Cranfield University’s School of Management –  say that if the appointment rate of one woman to every two men appointed is sustained over the coming months, the 25% target should indeed be met before the end of this year.

Lax corporate governance has caused executive pay spiral, says Myners

by James Brockett, for People Management, February 9, 2010.

Institutional shareholders should exercise more power to clamp down on executive pay, financial services minister Lord Myners said today.

In a speech to the NAPF seminar on corporate governance, Myners bemoaned the “upward spiral” of boardroom remuneration in the last decade and said that major shareholders such as pension funds has a duty to impose more scrutiny on the issue. The failure of the banks in particular demonstrates the risk of large firms becoming “ownerless corporations” with no effective shareholder governance, he said.

“Over the past decade people who owned shares in UK banks have enjoyed a return of little more than zero. Over the same period bank executives and traders have taken home many billions of pounds in remuneration,” said Myners. “If you owned a bank outright, that is to say you were the sole shareholder, you would never stand for such a situation – but collectively we have. Somewhere in the fragmentation of ownership of quoted companies… we appear to have lost the ability to hold the boards of some public companies to account.”

Myners referred to Incomes Data Services research showing that FTSE 100 chief executives earn 81 times the average pay of full-time workers. This multiple was less than 50 a decade ago, while management theorists historically believed that 20 was a healthy ratio. It is hard to explain this pay boom in terms of the demand or supply of talent, said Myners…(continue reading)

FTSE 100 Boards Go The Whole Hogg

by Mark Kleinman, for Sky News, November 30, 2009.

This is turning out to be a busy season for reforming the corporate governance of UK plc.

Last week, we had Sir David Walker’s recommendations about the future of bank boards and pay.

Tomorrow, Sir Christopher Hogg, the former chairman of Allied Domecq, GlaxoSmithKline and Reuters Group will outline how Sir David’s report can be applied more widely across British industry.

It should make interesting reading. I understand that the Financial Reporting Council, which Sir Christopher chairs, will recommend that at the very least, all FTSE 100 chairmen should put themselves up for annual re-election.

That would mark a significant change from the current regime, in which non-executive directors tend to get elected for three-year terms.

It is also likely to have an impact on the dynamic between institutional investors and major companies by making board members the focal point for shareholder anger about management or strategy…(continue reading)

Wunch of Bankers

by Spygun, November 26, 2009.

The Walker Review on the corporate governance of banks recommends that FTSE 100-listed banks and the largest building societies should disclose in bands the number of “high end” employees, including executive board members (whose incomes are not a secret anyway).

The bands would show the number of people taking home £1m to £2.5m, £2.5m to £5m, and £5m and above.

The report recommends that within each band, the main elements of salary, cash bonus, deferred shares, performance-related long-term awards and pension contributions should be disclosed.

The changes are expected to come into force from spring 2010 with the first yearly earnings disclosures not available until 2011.

This appears to be a watered-down version of what was first proposed. Originally, it was suggested that individuals at the high-end of the salary and bonus bracket should be named. Technically, there are still ways for these individuals to avoid such scrutiny – whether they are named or not.

The easiest, of course would be for someone earning say £1 million to resign and return the following day as a self-employed consultant or as an employee of his own company…(continue reading)

UK: executive pay – NAPF principles

by Robert Goddard for Corporate Law and Governance blog, November 13, 2009.

The chief executive (Joanne Segars) and head of corporate governance (David Paterson) of the National Association of Pension Funds have written to FTSE350 chairmen setting out several principles for the alignment of executive pay with shareholders’ interests. The letter, published today, also states the NAPF’s view that “a review of accepted best practice, which serves neither shareholders nor management well, is warranted and we have made these views clear to Government and in the FRC consultation on the Combined Code“.

To read the article from the source click here.

Corporate Governance reforms spark debate

by The Economist at Gulfnews, October 20, 2009.

Is there any limit to the audacity of Scandinavians? Not content with stirring up America’s polarised politics by awarding Barack Obama a premature Nobel peace prize, they are also stirring up America’s polarised debate on corporate governance.

This time the culprits are not the Norwegian politicians who award the peace prize, but the savvy investors who run Norges Bank Investment Management (NBIM), which manages a state pension fund of $400 billion (Dh1.4 trillion).

NBIM is trying to persuade four American companies — Harris Corporation, Parker Hannifin, Cardinal Health Incorporated and Clorox — to separate the jobs of chief executive and chairman of the board when they next appoint chief executives…(continue reading)

Women for Boards aims for more female non-executive directors in FTSE

by Kathryn Hopkins, for The Guardian, September 21, 2009.

CBI president Helen Alexander and Sainsbury director Anna Ford to mentor female candidates who lack board experience

Women who want to break through the glass ceiling to become a non-executive director of a top public company can now receive the help of an expert mentor, after a new initiative was launched today.

Women for Boards, which is sponsored by MWM Consulting and BP, is a scheme that aims to increase the number of high-quality women on the boards of FTSE 250 and FTSE 350 companies.

It plans to pair potential female candidates with mentors such as the former newsreader Anna Ford, now a non-executive director at Sainsbury’s; DeAnne Julius, chairwoman of Chatham House and non-executive director of BP; and Helen Alexander, president of the CBI business lobby group and non-executive director of Rolls-Royce and Centrica.

Speaking at the launch of Women for Boards, Ford said: “Female board directors still face the tough climb to the top. We believe we can improve the productivity of boards by improving their diversity…(continue reading)

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