Open AccessBoard evaluation process in Italy: How far is it from the UK standard?
Author(s) -
Maria Gaia Soana,
Giuseppe Crisci
Publication year - 2017
Publication title -
corporate board: role, duties and composition
Language(s) - English
Resource type - Journals
eISSN - 2312-2722
pISSN - 1810-8601
DOI - 10.22495/cbv13i3art1
Subject(s) - nomination , accounting , corporate governance , shareholder , business , process (computing) , political science , public relations , finance , computer science , law , operating system
Both the UK and the Italian Corporate Governance Codes call for boards to undertake an annual evaluation of their own performance and that of their committees. The study analyses the board review process conducted by the 25 most capitalized Italian listed companies at June 30th, 2016 and the top 25 companies included in the FTSE 100 on the same date in terms of objectives, parties involved, methodological approaches, suggestions to shareholders, board nomination and election. The Italian trends on board evaluation are compared to UK trends, as the UK is particularly advanced with regard to best practices on board self-assessment. Our analysis shows that in 2016 the most capitalized Italian companies seem to have improved their self-assessment compared to the past, in particular with regard to the disclosure of the process, the involvement of independent external consultants and the number of evaluated subjects. However, some aspects require improvement in the near future.