FTSE 350 chairmen are failing to inspire a governance culture

ONLY 10 per cent of chairmen provide any meaningful insights into how they implement an appropriate governance culture throughout their organisation, according to Grant Thornton’s FTSE 350 corporate governance review.

The report also revealed that only 43 per cent of chairmen use their annual report statement to refer to the company’s governance practice.

Simon Lowe, partner at Grant Thornton, said, “It is the chairman’s job to set the governance tone for the company which needs to be clearly and widely communicated so as to permeate throughout the business.”

The review also found that while the number of independent directors has risen to 80 per cent, only one in 10 of the FTSE 350 have Lord Davies’ recommended 25 per cent female representation on their boards.