The Communication of Corporate Governance and disclosure
is one of the key areas that IR teams develop to provide
direction and clarity on the company and to fulfil all legal
and regulatory responsibilities. In selecting those companies
who are demonstrating excellence in this category, you should
consider the following key areas:
- Overall Corporate Governance framework.
- Board appointments.
- Director remuneration resolution.
- Operation of the board.
- Boardroom appraisal directors.
- Operation of board committees.
- Executive versus non-executive directors.
- Director training & support.
- Directors' role & conflict of interest.
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- Internal control & risk management.
- Independence of non-executive directors.
- Split between CEO & Chairman.
- Interaction between directors & shareholders.
- AGM agenda & resolutions.
- Corporate Governance Compliance Report.
- Shareholding & senior management's disclosure.
- Senior management remuneration
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Scope and depth
The communication of Corporate Governance should be done so that the information disclosed allows investors to understand the underlying corporate governance policy and practices of the company.
Investor engagement
The Communication of Corporate Governance should demonstrate how companies transmit their adoption of best practices to the investor community and not just a compliance burden.
Functionality
The Communication of Corporate Governance should be done so that it enables shareholders to track progress on those key governance issues mentioned above and make comparisons with previous communications over a sustained period.
Empirical evidence
The Communication of Corporate Governance should demonstrate company awareness of the benefits of greater transparency and accountability to the investor community and clear evidence of best practices.
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Banco de Chile