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Until recently, there has been no standard in Anglo-Saxon practice for the external assessment of audit committees. The best-practice standard for audit committee assessment has always been based on self-assessment.This practice is now being reconsidered.
Investors and stakeholders in various companies and organisations, across all industries and of all sizes, are increasingly calling for improved audit committee reporting. In particular sentiment has been moving in the direction of bespoke and customised methods of audit reporting.
The corporate governance landscape has undergone numerous substantial changes over the last few years and this trend is moving forward progressively. As part of this discussion director pay and remuneration policy have become contentious issues of focus. Shareholder activism has understandably grown rapidly since the financial crisis of 2008.
Shareholders and relevant interested parties are increasingly demanding explanations for climbing executive pay. They want justifications for the large pay packages and also the bonuses and increases that are implemented year on year by and to company senior executives.
Following the 2008 financial crisis, the landscape of corporate governance has undergone numerous substantial changes and this trend has been moving forward at an increasing pace over the last few years. As part of this discussion the evolution and establishment of director pay and remuneration policy have become particular issues of focus. Shareholders want more of a say and more disclosure when it comes to executive compensation.
The 2007-2008 financial crisis and the collapse of the large American investment bank Lehman Brothers led to widespread public, media and political outrage over large CEO pay packages at Wall Street firms which were subsequently bailed out by taxpayers. In response the US Congress passed the Dodd-Frank law.
Across the globe, the function of the audit committee is to provide recommendations, guidance and advice to the board of companies and organisations. Specific responsibilities and requirements for an audit committee can vary by country, however, the framework of the audit committee role is often influenced by economic and political factors and unionised groups who are capable of campaigning for and passing through evolved legislation.
CEO succession is a critical decision for corporations in the current business climate. Nominating committees must seek talent and must possess the insight and knowledge in selection so as to avoid falling short of finding the best candidate for the role. The nomination committee of an organisation is a fundamental part of the corporate governance structure of the enterprise.
The post crisis climate has made the audit committee role more important than ever. Investors and all related business parties are keeping a closer eye on the corporate governance and regulatory stringency of company financial behaviour and the oversight of this falls to the audit committee.
The nomination committee of an organisation is a fundamental part of the corporate governance structure of the enterprise. The nomination committee’s focus predominantly on evaluating the board of directors of the particular organisation as well as examining the talents, characteristics and skills that are required from candidates to be nominated to join the board.
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