House builder Berkeley Group has come out second worst of an analysis of corporate governance at FTSE 100 companies.
It would appear that authors of the study are not convinced by chairman Tony Pidgley’s £21 million remuneration package, or on Rob Perrins pocketing £11 million. However, it seems that shareholders in the company are not bothered by this too much.
The study also found that none of the construction industry’s FTSE 100 firms came out well from the corporate governance study, with only Barratt Developments making the top 50.
The Institute of Directors 2016 Good Governance Report examined the 34 factors across five areas of corporate governance: stakeholder relations and shareholder relations, remuneration and reward, audit and risk/external accountability and board effectiveness. The choice of these criteria was determined by the UK Corporate Governance Code and the Companies Act 2016.
The Good Governance ranking is headed by the following organisations:
British America Tobacco
United Utilities Group
Meanwhile, companies from the construction sector featured as follows:
- Barratt Developments
- Taylor Wimpey
- Travis Perkins
- Berkeley Group
The study was supported by the Chartered Quality Institute and Cass Business School, while Tesco came out bottom of the pile.
Head of Profession at the Chartered Quality Institute, Estelle Clerk, commented: “Good governance requires more than a stated intent. It requires a profound understanding of how principles of good governance are implemented and delivered at every level of a company and its delivery partners.
“For the construction sector, working with a diverse supply chain in order to deliver key projects, this is especially challenging. Our intention in supporting the Good Governance Report is to stimulate discussion on what constitutes good governance and how this can be demonstrated.”