Strong corporate governance practices are crucial to any business and set the foundations for long-term performance. Companies that function well are better placed to perform well – to the benefit of the company’s bottom line; its stakeholders, including its employees; and its shareholders.

At the IA, we have a range of initiatives to support good governance at UK listed companies including our guidelines on corporate governance and share capital management, our Principles of Remuneration, the in-house corporate governance experts in IVIS, and a series of focused campaigns highlighting the key governance issues for investors each year.

IA guidelines for listed companies

We work throughout the year to encourage the corporate governance approaches that will lead to long-term shareholder value for our members and ultimately savers.

The IA produces guidelines for listed companies on corporate governance, setting out investor expectations of their behaviour across a range of issues including executive remuneration, long term reporting and share capital management.  

Our work in 2020 is headlined by our Shareholder Priorities for Listed Companies. This outlines the four areas that our members asked us to prioritise to drive long term value:

  • Responding to Climate change
  • Audit quality
  • Stakeholder engagement and
  • Diversity

These four issues present an opportunity to better the UK’s listed market; making it more diverse, future-proof, holistic and resilient. 

The document outlines investor expectations on each issue, the actions the IA is taking to improve them and the approach IVIS will be taking during the year to assist members in monitoring the improvements companies are making.

Our members have already shown that taking action on corporate governance issues can achieve positive and lasting results, improving company behaviour for the better. In 2019, we supported our members by focusing on three key issues they identified as critical for better run companies: diversity, executive pensions and quality of audit. The IA was pleased with the progress companies had made against these priorities in 2019.

For more information, please the IA’s Good Stewardship Guide 2020.

IVIS

The IA’s Institutional Voting Information Service (IVIS) is a corporate governance research service which analyses FTSE All Share and FTSE Fledging companies against the IA’s investee company guidelines, the UK Corporate Governance Code and best practice.

Consultation Responses

In addition to the above, the IA responds to policy consultations to provide key industry insights and help shape the corporate governance and stewardship reform agenda. All of our consultation responses are included on the IA's Responses and Representations page, with recent work including:


MORE INFORMATION & CONTACT

See full details of how the IA is supporting its members on corporate governance in the member area.

Contact Sarah Woodfield or Laith Cahill for more information.

 

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We have devised and launched an industry-wide Productivity Action Plan to boost the UK economy through long-term investment, helping to reverse the UK’s Productivity problem.

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