Monthly Archives: October 2015
City Developments Limited (CDL) is a property and hotel conglomerate listed in Singapore and one of Singapore’s largest companies by market capitalisation. As Singapore’s property pioneer since 1963 with an impressive track record of having developed more than 36,000 luxurious and quality homes across diverse market segments and one of Singapore’s biggest landlords, CDL has over the past 50 years been committed to continually create value for our investors and stakeholders. Our focus on the triple bottom line has spearheaded our efforts to develop the right mix between financial and ethical performance, environmental stewardship and social engagement. Strong corporate governance and sustainability are thus integral pillars of our business, helping us to build trust, strengthen our brand equity and create lasting value.
At Mindtree, we look upon good corporate governance practices as a key driver of sustainable corporate growth and long-term stakeholder value creation. Good corporate governance practices enable us to attract high-quality financial and human capital. This in turn helps us leverage and maximise long-term shareholder value and preserve the interests of multiple stakeholders, including the society at large. All our employees, whom we refer to as ‘Mindtree Minds’, are expected to adhere to our core values and follow the highest standards of integrity. We have a clearly articulated integrity policy, which is applicable to all Mindtree Minds across all our offices globally.
The weak global economic conditions and an increasingly competitive container shipping sector has hit the bottom lines of shipping and transportation companies across the world, but effective corporate governance helped Neptune Orient Lines Limited (NOL) steer its course through the waves of this challenging business climate. A strong partnership between NOL’s board and its management ensured operational efficiency and rigorous cost management for this shipping and transportation group, which handles about three million 40-foot equivalent units (FEUs) across 160 ports worldwide.
The use of technology in the boardroom is not a new concept. The ability to consume a high volume of corporate information delivered through a browser that more directors are happy to consider a portable tablet solution as a viable alternative.
No matter your level of support for or interest in the issue of diversity in the boardroom, no one would disagree that it is a ‘hot topic’ in corporate governance circles and corner offices around the globe. Diversity in the boardroom can mean many things. When I started recruiting corporate directors in the United States about 18 years ago, diversity most often referred to ethnic diversity. Specifically there were efforts of various magnitudes to increase the representation of African Americans and Hispanics on boards.
The so-called ‘Florange Law’ introduced a double voting right in every French-listed company. The sole opportunity for shareholders and firms to restore the ‘one share, one vote’ principle is to adopt an ‘opt-out’ provision by modifying the articles of association. This matter has become urgent since the double voting rights will be definitely granted in April 2016 to holders of registered shares after a registration period of two years in the company’s registry of shareholders.
Incentive plans have two primary purposes: 1) To motivate behaviour and drive performance aligned with strategy and 2) To align rewards with shareholder interests. From these two simple purposes come the most difficult work of the compensation committee and an area of increasing focus by shareholders. Choosing the wrong metrics can create unintended consequences and erode the value of the business. So how do companies choose the right ones?.
If your general counsel (GC) unexpectedly resigned tomorrow without a successor, consider how many moving parts would come to a halt. Who would protect your company from the many risks associated with the business in our heightened regulatory environment? Who would manage your legal department and oversee your outside counsel?
Credit rating agencies, such as Moody’s, and shareholder advisory groups, such as Institutional Shareholder Services, now assess the effectiveness of boards’ risk oversight practices when rating firms and issuing voting recommendations. At the same time, board members are facing greater legal liability when risks are not adequately managed
Some directors embrace it as the positive, value-added experience that a good evaluation can be. Some either want to rush through it or treat it as an exercise in compliance and simply ‘tick the boxes’. Others, who may have had a ‘bad’ experience with evaluation, consider it a waste of time or just don’t think they need it.