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Long Governance - Is Reform Still Needed?

 

Date

Wednesday 24 November 2010

Venue

Grant Thornton, 30 Finsbury Square

Links

Introductory presentation

"What's Missing?" presentation

"Where's The Incentive?" presentation

‘A Long-Term Focus for Corporate Britain’, BIS review

Highlights

Generously hosted by Grant Thornton.

Welcome: Sterl Greenhalgh (Partner, Grant Thornton)

Introduction (download presentation): Professor Michael Mainelli (Director, Z/Yen Group Limited)

Talk: Long Governance: What's Missing? (download presentation), Paul Moxey (Head of Corporate Governance and Risk Management, ACCA)

Despite 20 years of rapid evolution in governance and in risk management, the credit scrunch demonstrated yet more examples of failure in what had hitherto been believed to be well governed institutions with leading edge risk management. So what is going on? Is there a fundamental problem with corporate governance and risk management as we currently know it? Will the new Stewardship Code make a difference? What more can institutional investors do to ensure companies are governed for the long term and investee boards properly manage risk?

Discussion: What needs to change?

Talk: Long Governance: Where's The Incentive? (download presentation), Eoin McCarthy (Quakers and Business)

The behaviour of directors and investors is key to the long term success of any company. In financial services, regulation exerts a particularly strong influence on that behaviour and the consequences can be both surprising and unwelcome. The Basel framework unwittingly created incentives for the massive build up in leverage and credit boom. This contributed to prosperity for many but, as we now know, was not sustainable and had massive social cost. This session will explore how directors and investors can be more wary of how incentives, particularly where triggered by regulation, affect behaviour and how to balance short-term benefits against long term costs.

Discussion: Where's the incentive for long governance?

Speakers

Paul Moxey Head of Corporate Governance and Risk Management, ACCA

Frank Curtiss Head of Corporate Governance, Railpen Investments

Andrew Kakabadse Professor of International Management Development, Cranfield University, School of Management

John Kay Economist and author of “The Long and Short of It”, 2009

Eoin McCarthy Quakers and Business

Sean Tully Managing Director, WestLB Debt Markets and co-author of "Restoring Confidence in the Financial System: See-Through-Leverage: A powerful new tool for revealing and managing risk”, 2010

Professor Michael Mainelli Director, Z/Yen Group Limited (chair)