(MENAFN- The Peninsula) The Peninsula
The Institute of Directors (IOD) hosted the Corporate Governance Summit at Hotel ITC Grand Chola, Chennai, India yesterday under the theme Emerging trends in Corporate Governance. Dr. R. Seetharaman, CEO of Doha Bank received the professional excellence award from the Chief Guest, Banwarilal Purohit, Governor of the Southern Indian state Tamil Nadu.
Dr. R. Seetharaman also gave the Special address. He said 'The key areas which require attention after the global financial crisis include Remuneration and incentive systems, Risk Management, Board's skill and independence and Shareholder engagement. Steps must be taken to ensure that remuneration is established through an explicit governance process.
It should be considered good practice to give a significant role to non-executive independent board members in the process. Effective implementation of risk management requires an enterprise-wide approach rather than treating each business unit individually. It should also be considered good practice to involve the Board in both establishing and overseeing the risk management structure and good practice that shareholders can nominate board members and have a significant role in their appointment through instruments which take into account the specific features of the ownership structure of a company, he added.
Dr. R. Seetharaman highlighted on the emerging trends in corporate governance in advanced economies. He said in the US market, investors are pushing for improved board quality and view board composition, diversity, and the refreshment process as key elements. Investors want to see an increased diversity of thought and experiences to better enable the board to identify risks and improve company performance. There is continued and growing focus in the US on sustainability and climate change across a range of sectors.
In Europe, investors will focus on connecting governance to long-term value creation through board oversight of talent management, Environmental, Social and Governance (ESG), and corporate culture. With gender diversity regulations already widely adopted across Europe, Austria has stipulated that public company boards have at least 30 percent women directors. The new UK Corporate Governance code will apply to reporting periods starting from January 1, 2019, although many companies have begun to apply it more quickly.
Diversity will continue to be a priority for board attention, including gender and ethnic diversity. To make Japan more attractive to global investors, policymakers are increasingly focused on improving board accountability.
Given recent scandals in Japan, institutional investors and regulators will continue to pay close attention to the structure of executive compensation. Boards can expect more shareholder interest in sustainability metrics and strategy, Dr Seetharaman said.'
The Doha Bank CEO highlighted the emerging trends in corporate governance in emerging economies. He said 'In Brazil, there is an ongoing push for more independence within the governance framework. More independent directors are being appointed to boards due to wider capital distribution.
MENAFN1509201900630000ID1099005563
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.