On 17 December KPMG presented the key findings of the joint study with ACCA entitled “Balancing Rules and Flexibility”.
The joint study of KPMG and ACCA entitled “Balancing Rules and Flexibility” surveys corporate governance requirements across 25 markets.
The objectives of this study were to examine corporate governance (CG) requirements in terms of clarity and completeness of content, degree of enforceability and prevalence, to identify common CG requirements and emerging trends and to raise awareness of the similarities and differences in CG requirements across markets, geographic regions and economic zones.
The study focused on the key corporate governance themes grouped into four major pillars, being Leadership & Culture, Strategy & Performance, Compliance & Oversight and Stockholder Engagement.
The study demonstrates exciting take-aways as of Russia's position among other surveyed markets in terms of corporate governance regulation.
Thus, Russia places 7th (with Great Britain, USA and Singapore leading the way, respectively) in the global rank of markets in terms of clarity and completeness of corporate governance requirements and 3rd among developing markets, lagging only behind India and Malaysia.
In accordance with the study, the strongest (most well-defined) corporate governance themes in Russia are as follows: the Nominating Committee, Remuneration Structure, Director Independence, Audit Committee and Financial Integrity, while the weakest (least well-defined) ones are the Board Diversity, Stakeholder Engagement and Communication, Role of the Board and Assurance.
“For us and our colleagues, such scores received by Russia are a pleasant surprise. We surely understand that there may exist a certain gap between regulation and business practices. At the same time, by adopting a new corporate governance code, the regulator clearly signaled to the market where to go, and such effort was praised by international experts,” Igor Korotetsky, Head of Corporate Governance & Sustainability, says. “Businesses now have to comprehend how ready they are and what steps should be taken to meet these expectations, as this very high standard is in line with an understanding of both Western and Asian investors of robust corporate governance.”
For more information on the findings of the study, click here.