Spotting Signs of Poor Corporate Governance. Part 2: ESG Management
Corporate governance is only one part of an overall phenomenon known as “ESG management,” or how a company handles environmental, social, and corporate governance (ESG) issues. “Research shows that companies that disclose more ESG information are more likely to enjoy a lower cost of capital,” said Max Zehrt, Senior Manager at Sustainalytics. He was addressing a noon-hour seminar of financial analysts and portfolio managers on the subject of corporate governance on May 8, 2013 at the offices of the CFA Society Toronto. His talk was the second part of a two-speaker panel moderated by Toby Heaps of Corporate Knights. Zehrt was […]
Spotting Signs of Poor Corporate Governance. Part 1: “Ask the Tough Questions”
“Good governance practices are important for the sound financial growth of a corporation—the board directs and protects,” said Stephen Kibsey, VP Equity Risk Management at Caisse de dépôt et placement du Québec. On May 8, 2013 he addressed a noon-hour seminar of financial analysts and portfolio managers through remote link on the subject of corporate governance at the offices of the CFA Society Toronto. His talk was the first part of a two-speaker panel moderated by Toby Heaps, co-founder and president of Corporate Knights. Kibsey pointed out that concern over matters like environment, social and governance (ESG) issues within a […]
Measuring the ROI of GRC. Part 2: Solutions to “Absorb Regulatory Demands”
An unprecedented amount of new regulations “has led to risk assessment fatigue,” said John Kelly, Market Segment Manager in Business Analytics at IBM. He was the second of two speakers who addressed a GARP webinar audience on March 28, 2013 on the topic of the return on investment (ROI) on governance, risk assessment, and compliance (GRC). Most of the presentation referred to the study “Guidebook: Understanding the Financial Value of GRC Management” released in October 2012 by Nucleus Research that was talked about by Hyoun Park in the first part of the presentation. When it comes to regulation, there is […]
Measuring the ROI of GRC. Part 1: “Your Mileage May Vary”
When looking at the return on investment (ROI), “it’s not about getting the highest number—it’s what is most defensible,” said Hyoun Park, Principal Analyst at Nucleus Research. Park was speaking on March 28, 2013 to a webinar audience on the topic of how to quantitatively measure the ROI on governance, risk assessment, and compliance (GRC). The two-speaker panel, convened by the Global Association of Risk Professionals (GARP), based their remarks on a study released in October 2012 by Nucleus Research (cover shown here). The report states “this research was conducted in context of the usage of IBM OpenPages, a software […]
Executive Compensation: Insights for Investors
If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don’t have to manage them. – Jack Welch Catherine McCall and Damian Yu, both principals at Hugessen Consulting , provided a lively overview of issues in executive compensation to an afternoon audience at the CFA Society Toronto offices on August 20, 2012. The duo first outlined the current governance and market environment of compensation, then gave helpful pointers for deciphering management information, and concluded with “hot topics” in the area. Executive compensation deserves the attention […]