Corporate governance in Europe: raising the bar

Abstract

Purpose

The purpose of this paper is to provide a comprehensive overview of European Boards. Analyzes Board composition, working style, remuneration and disclosure levels. Looks to the past and to the future as countries are placed in their local context while comparing their progress with each other.

Design/methodology/approach

The article is based on the research by Heidrick & Struggles for its biennial report on Corporate Governance in Europe. The article is based on the analysis of the annual report and official publications of the top companies by market capitalization from national indexes in 10 countries. Each of the 294 companies was rated individually to a maximum rating of 16, to produce a country average, from which we generate a European average. Rating criteria include the working style of the Board, its composition and disclosure levels. The full Report can be found on the Heidrick & Struggles' website: www.heidrick.com Findings – Empirical research highlights significant progress on corporate governance in all countries and increasing convergence both within countries and across Europe. Compliance has become a fact of life now for the Boards of most organizations. Emphasis has shifted towards performance. Nonetheless much remains to be done as corporate governance pressures remain at the forefront of Board agenda.

Originality/value

The paper is based on original empirical research. The objectivity and consistent methodology ensures that the paper is a useful reference for anyone tracking corporate governance practices in Europe.

Citation

Albert‐Roulhac, C. (2008), "Corporate governance in Europe: raising the bar", Business Strategy Series, Vol. 9 No. 6, pp. 287-290. https://doi.org/10.1108/17515630810923586