Global Pharmaceutical Company – best practice board governance
Realising that reporting of governance issues can affect investor confidence, the client asked Article 13 to provide an external perspective on drivers and trends in the key international stock exchanges, as well as a benchmark against publicly reported governance policies of competitors and best practice from wider industry.
What did we do?
There were two parts to the project. The first involved using our networks and desk based research, to identify the critical governance challenges and issues facing companies over the coming few years. Specifically focusing on the Swiss, UK and US stock exchanges, information was collected and collated on the leading thinkers and opinion formers views about the next ‘big thing’ in governance.
The second part of the project was grounded in current reality. Article 13 first analysed the public reporting of governance policies of the client, against nine pre-defined criteria. The criteria included issues such as reporting of executive director compensation arrangements and details on executive appraisals and training.
With information collected on the client’s current reporting in these nine areas, Article 13 selected the company’s four biggest competitors, and carried out the same analysis for them. The findings were cross referenced, to benchmark the client against its competitors. Industry wide best practice companies were also defined, informed through key informant interviews, and again the client benchmarked against these companies.
A briefing was delivered to the clients board, outlining the findings, highlighting the strengths of reporting, as well as the areas of risk and under reporting.
How did we break the cycle?
In benchmarking against competitors and best practice, Article 13 was able to highlight gaps of vulnerability and risk in reporting on critical governance issues, in addition to identifying opportunities for further reporting of issues such as climate change and supply chain
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