Good corporate governance makes good business sense

Steve HillChartered Director, Managing Director at Systems Engineering and Assessment Ltd. Bristol

Is your board fit for business?

Wednesday 22 May 2013100 Victoria Street

Bristol

What is Corporate Governance?

“Corporate Governance is about how companies are directed & controlled”

• Increasing focus since problems in 90’s

• The Board – must ensure the interests of shareholders and stakeholders are fulfilled by the organisation– Leadership– Monitoring & Control– Senior executives– Audit

Leadership

• The board must:– Ensure the business has a realistic and clear

strategy– Has a business plan which describes how the

strategy will be delivered– Has budgets which will enable the success of the

strategy to be measured

Monitoring and Control

• The board must:– Ensure the business has a process for measuring

its performance– Review the business performance• Business Plan• Budgets• Customer feedback

– Ensure corrective action is taken were required– Challenge effectiveness of measures

Senior Executives

• The board must:– Select, set the compensation off and monitor all

key executives– Align remuneration of the senior executives with

the interest of the company and shareholders

Audit

• The board must:– Ensure the financial integrity of the businesses

financial reports– Ensure that delegations are followed– Ensure business complies with legal obligations

Is your board fit for business?

Wednesday 22 May 2013100 Victoria Street

Bristol