Growth in all directions
This survey, now in its third consecutive year of publication, provides a unique perspective on the concerns that boards of directors face around the world on a variety of corporate governance matters, ranging from board composition and risk oversight, to the directors’ role in strategy. In addition, this year’s survey expanded to include topics such as regulatory trends and associated perceptions, cyber security, internal audit, compliance, and anti-corruption regulations—among others.
Deloitte has conducted the international survey annually since 2011; Russia has been included for the first time in the current edition, with 23 respondents. The most notable feature of the Russian sub-sample is that directors in the country were fairly critical of the regulatory environment and the protection of investor rights.
“Russian respondents openly recognized the shortcomings prevailing in corporate governance in Russia and indicated priority areas for solving these issues. The solutions presented revolve around increasing the effectiveness of the regulatory environment, improving board composition and procedures as well as interaction with major shareholders.”
Oleg Shvyrkov, Director of the Deloitte CIS Center for Corporate Governance
Highlights from the survey
Corporate governance environment
Directors of Russian companies are critical of the regulatory environment and the level of protection of investor rights in the country. Thirty-nine percent view the regulatory system as ineffective (vs a global average of 12%) and 78% consider the Russian corporate governance system to be ineffective at protecting investor rights (vs a global average of 30%).
Directors of Russian companies were largely critical of the work of their own boards. For example, 61% of respondents believe that the evaluation procedures for boards of directors are ineffective (vs a global average of 27%).
Priority agenda items
Respondents in this survey indicated that boards primarily focus on current operations. Issues such as risk management, the regulatory environment, corporate governance and ensuring compliance were not in the top five most discussed topics. Nevertheless, the directors surveyed expect a shift toward long-term goals and sustainable development.
Cooperation with major shareholders
The majority of Russian company directors surveyed noted the need for including additional independent directors on their boards (66%), as well as increased transparency around the influence of major shareholders (91%).
Participating countries/ regions
- Czech Republic
- The Middle East
- The Philippines
- United States