Eurozone lags behind on corporate governance
In the UK high standards of corporate governance are widespread but in Europe best practice is still developing, according to a recent survey.
Over 80% of the chairmen of UK companies surveyed believe that separating the CEO and chairman function is beneficial. In the rest of Europe this figure is lower, with under 70% of Belgian chairmen and under 50% of French chairmen believing that the two functions should be separated.
And, while all UK respondents have a remuneration committee, the figure was lower in Germany (64%), the Netherlands (56%) and Switzerland (48%).
Similarly, while all UK respondents have an audit committee, only 59% of Belgian and 62% of Swiss companies have one. Propping up the table is Germany, where only 41% of respondents have an audit committee, although this may be a reflection of the country’s two-tier corporate structure, the survey claims.
Moreover, 90% of UK boards meet seven times a year or more, while only a quarter of Belgian and Swiss boards meet as often.
Despite differences from country to country, KPMG expects institutional investors to drive the emergence of common European governance standards over the next 10 years.
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