Corporate governance boosted by two-strike rule
Thursday, 17 January 2013 10:50am

The 'two-strike rule' on remuneration has improved corporate governance by making company directors more accountable to their shareholders, according to AMP Capital.

The investment manager has been a long supporter of the rule which was brought in on 1 July 2011. It can call for a whole board to be re-elected if a significant proportion of shareholders disagree with the amount directors are paid.

AMP Capital head of ESG research Dr Ian Woods said the increased scrutiny of remuneration reports has led to improved discussions on other governance factors throughout the recent Annual General Meeting (AGM) season.

"This AGM season we've seen a dramatic increase in the number of companies seeking to engage with us," he said.

"This has provided an opportunity to not only get a greater insight into a company's priorities through more transparent remuneration structures, but also to raise other important issues."

Woods says the increased engagement is an important part of being an active shareholder.

"As a large investor and owner of companies on behalf of our clients, we have a responsibility to engage with boards on a broad range of issues such as management of talent, environmental risks and sustainable practices," he said.

The corporate governance report also provides an update on gender diversity on boards.

It found that in 2010, 60% of boards had no women directors on them, but now this number has dropped to 39%.

"Since 2010, there has been clear evidence that progress has been made with regard to increasing the gender diversity of listed company boards of directors," said Woods.

Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Medcraft's appalling speech
I am surprised. More than that, I am astonished, shocked. Last week I was left speechless by the address that the Australian Securities more
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

Women-led companies better for investors
The Australian government end last year released its first Gender Equality Scorecard and while the results are discouraging, a separate ... read more
News Search   
VideoBrought to you by
Adviser Efficiency
The secret sauce to an enduring adviser-and-client relationship changes from time to time. One minute it's about the adviser's ability to provide expert advice around investments and the next minute, it's ... Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
State Street Global Advisors SPDR S&P 500 ETF
We invite you to watch our latest video program on FSiTV featuring State Street Global Advisors (SSgA) head of SPDR ETFs Amanda Skelly, as interviewed by Mark Smith, deputy editor of Financial Standard. In ... Watch video
Get it
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Adviser Big Day Out Investment Manager Roadshow-Perth
Adviser Big Day Out Investment Manager Roadshow-Adelaide
Adviser Big Day Out Investment Manager Roadshow-Melbourne
Adviser Big Day Out Investment Manager Roadshow-Brisbane
Adviser Big Day Out Investment Manager Roadshow-Sydney

$245 (inc GST) for 1 year
Copyright © 1992-2015 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something Pv37F7pz