Executive Group Publishes Statement of Commonsense Principles of Corporate Governance: Principles Aim to Provide Basic Framework for Sound, Long-Term Public Company Governance and Stimulate Further Conversation; Acknowledge There Is No One-Size-Fits-All ApproachSullivan & Cromwell LLP - July 22, 2016
Yesterday a group of 13 executives from some of the largest U.S. public companies and asset managers, as well as shareholder activists, public pension funds and mutual fund companies, released a statement of corporate governance principles for public companies, their boards of directors and their shareholders. The Principles are intended to provide a framework to support strong and lasting corporate governance and recommend, among other concepts, competent, diverse and independent boards with appropriately aligned incentives and tenures, an emphasis on long-term strategy in public reporting including flexibility in whether a company provides earnings guidance, sensible use of non-GAAP measures and greater access by asset managers to companies and their key decision makers and vice versa.
Given the diversity of public companies in the United States, the group acknowledged that the application of every part of these Principles to every company in the same manner is unrealistic. Instead, the Principles are intended to serve as a starting point for further discussion on good corporate governance and be applied by companies taking into account their size, products/services, history and leadership.