Consensus on the Comply or Explain Principle
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Consensus on the Comply or Explain principle (IVOR nr. 86) 2012/5.5.5:5.5.5 Top 5 deviations convergence
Consensus on the Comply or Explain principle (IVOR nr. 86) 2012/5.5.5
5.5.5 Top 5 deviations convergence
Documentgegevens:
mr. J.G.C.M. Galle, datum 12-04-2012
- Datum
12-04-2012
- Auteur
mr. J.G.C.M. Galle
- JCDI
JCDI:ADS369225:1
- Vakgebied(en)
Ondernemingsrecht (V)
Toon alle voetnoten
Voetnoten
Voetnoten
The literal wording of the best practice provisions is generalised.
Deze functie is alleen te gebruiken als je bent ingelogd.
Tables 5.5.5 and 5.5.5a present the top 5 deviations from the national corporate governance codes.
BEL
Top 5
Percentage of the top 5 deviations compared to total
Top 5 deviations
1
2
3
4
5
Data 2005
8.9
4.6
5.3
2.2
5.4
20.30075
2006
8.9
4.6
5.3
2.2
5.4
28.68217
2007
8.9
4.6
5.3
7.4
2.2
31.53846
2005-2007
8.9
4.6
5.3
2.2
5.4
28.06122
GER
Top 5
Percentage of the top 5 deviations compared to total
Top 5 deviations
1
2
3
4
5
Data 2005
4.2.4
5.4.7
3.8
4.2.3
6.6
59.375
2006
5.4.7
3.8
4.2.3
6.6
5.1.2
57.69231
2007
5.4.7
3.8
4.2.3
5.3.3
6.6
54.36893
2005-2007
5.4.7
3.8
4.2.3
4.2.4
6.6
52.23881
IT
Top 5
Percentage of the top 5 deviations compared to total
Top 5 deviations
1
2
3
4
5
Data 2005
1.2
13.4
7.1
10.1
8.1
84.12698
2006
6.c.1
11.C.5
1.c.1
7.p.3
8.p.4
71.23288
2007
11.c.5
1.c.1
6.c.1
1.c.3
3.c.6
67.21311
2005-2007
ll.c.5
1.c.1
6.c.1
7.p.3
1.c.3
64.92537
NL (selected)
Top 5
Percentage of the top 5 deviations compared to total
Top 5 deviations
1
2
3
4
5
Data 2005
II.2.7
II.1.1
II.2.6
III.7.3
IV.1.1
44.91979
2006
II.2.7
II.1.1
II.2.6
III.7.3
IV.1.1
45.08671
2007
II.2.7
II.1.1
II.2.6
III.7.3
III.3.5
45.2514
2005-2007
II.2.7
II.1.1
II.2.6
III.7.3
IV.1.1
44.89796
UK
Top 5
Percentage of the top 5 deviations compared to total
Top 5 deviations
1
2
3
4
5
Data 2005
C.3.1
B.2.1
A.3.2
A.4.1
A.3.3
64.38356
2006
A.3.2
B.2.1
C.3.1
A.4.1
A.3.3
61.29032
2007
A.3.2
B.2.1
C.3.1
A.4.1
A.3.1
60.78431
2005-2007
A.3.2
B.2.1
C.3.1
A.4.1
A.3.3
61.82796
Table 5.5.5 shows the numbers of the code provisions that are complied with worst of all. The numbers themselves give no specific information, however it can be seen that there are few changes over the years within the top 5 provisions not complied with. Above that the percentage of the top 5 deviations compared to the total number of deviations is considerable (between 20 and 85 per cent). These figures indicate that specific code provisions are possibly difficult to comply with or companies in practice are not willing to comply. To analyse this matter in more detail - why these deviations and why so often - the reasons for non-compliance of these specific provisions are reviewed further below (see sections 5.5.7 and 5.5.8).
Table 5.5.5a again shows, for the total years under review, the code provisions complied with least, although not by number but by general contents.1 Recurring deviations are the establishment of committees regarding nomination and remuneration, the remuneration and shareholdings of directors, independence criteria for directors and appointment periods. The main themes of the code provisions not complied with are partly similar for all five countries under review. Apparently these provisions are difficult to comply with for the companies, are very innovative or are perhaps even not in place in a corporate governance code. More analysis and discussion on these recurring deviations are provided below.