Register  
 
 
 
 
 
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.

News Search   
VideoBrought to you by
Developing investment opportunities
Given the evolution of Australian Equities funds over the last 10 years, how has the Growth team's investment strategy remained relevant? Watch video
MAX
We invite you to the 2014 Marketing, Advertising and Sales Excellence (MAX) Forum and Awards, the premiere event for financial services professionals who are raising the standards in marketing, sales and ... Watch video
Betashares high interest cash ETF
The Betashares high interest cash ETF is currently returning significantly above the default cash rates offered on the larger wrap platforms. Learn more about this product in this exclusive video featured ... Watch video
How to distribute 8% per year from global equities
Investor needs have not changed, what has changed is the level of income available from traditional yield sectors such as cash and bonds. This presentation will cover in detail how investors can diversify ... Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
APR
20
MAY
28
Asset Allocation 2014 Forum in Sydney,
29
2014 Annual Stockbrokers Conference
JUN
18
MAX: the Marketing, Advertising and Sales Exellence Forum and Awards
APR
28
FPA TASA road shows
29
FPA TASA road shows
News
Bites

$245 (inc GST) for 1 year
 
 
About Us
Contact Us
Privacy Policy
Terms & Conditions
Comments Policy
Events Calendar

Register
Archive
CPD Login
Register

Managed Funds
- Australian
- Global
Superannuation Funds
- Specialist
- Diversified
"Guide To" Series
Product Launches
Showcases

Home
Shows
Learning
Events
Profiles
Showcase
Platform Report
Mandate Chaser
Roundup
Advantage
Benchmarking

FS Advice
FS Super
FS Private Wealth
Copyright © 1992-2014 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 WFEO9UFF