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International
Corporate Governance Network
exchanging
corporate governance information internationally
raising corporate governance standards throughout the
world |
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| 2006
ICGN Awards |
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| Champions
of Governance rewarded |
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| Washington DC 7 July 2006
- Each year, the ICGN recognises individuals or organisations
who have made a real difference to the way corporations
are governed. In presenting the awards, Stephen Davis,
Chair of the Awards Committee, said, “With these
awards we recognise those people who have pioneered achievements
in accountability, people who have defied convention at
every turn and who never say that something cannot be
done. And let us also remember who gains from that. Here
in this hall we are 600, but we are standing in for the
hundreds of millions of citizens whose savings and pensions
depend on the actions we take”. This year three
awards were given. |
| The first award, presented
by Peter Clapman, Chairman of the ICGN 2006 Organising
Committee, went to Tomomi Yano, Executive Managing
Director of the Pension Fund Association (PFA) in Japan,
responsible for $110 billion in pension assets. Since
he assumed his current role in 2001, he has continued
tirelessly to promote and improve the standard of corporate
governance in Japan. PFA has played a role model for the
corporate pension funds by setting the standard of asset
selection, asset allocation and performance analysis.
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| “Many people in
Japan have gradually recognised the importance of corporate
governance over the last several years. Management focus
to increase shareholder value has also gradually been
prevailing in corporate Japan. We are pleased to see the
dramatic recovery of the Japanese economy partly because
of these efforts,” commented Mr Yano. |
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The second award presented
by another awards alumnus, Hasung Jang of the University
of Korea, went to an organisation rather than an individual,
the Australian Council for Superannuation Investors
(ACSI) - a member organisation providing a collective
voice on corporate governance for not for profit pension
funds managing a total of over $180 billion in retirement
income. |
| The award was in recognition
of the success ACSI had in the News Corporation case.
ACSI was able to co-ordinate the support of Australian
and other international based funds to campaign for better
governance arrangements in News Corporation when it moved
to Delaware in 2004. When an important condition of that
agreement, relating to a poison pill, was breached by
News Corporation ACSI again co-ordinated the support of
13 Australian, US and European pension funds to litigate
in the Delaware Court of Chancery for a breach of contract.
The decision of the Court has empowered shareholders to
be able to reach binding agreements with a Board to vest
shareholders with powers that would otherwise reside with
the Board. |
| The efforts of the ACSI
and all the supporting pension funds are an example of
how cross-border co-operation and trust can produce effective
results for shareholders. Michael O’Sullivan, President
of ACSI, and Phil Spathis, Executive Officer of ACSI,
accepted the award. “The greatest thing about
this campaign and the thing that made it successful was
the support and encouragement from pensions funds, institutions
and proxy advisers from around the world,” commented
Michael O’Sullivan. Phil Spathis added “These
not for profit funds were unconflicted in converting governance
rhetoric into action and reality.” |
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The final award for lifetime
achievement was presented to Alastair Ross Goobey,
Chairman of Hermes Focus UK, by Bill Crist, Executive
Vice President (USA) of UK based Governance for Owners.
"Alastair was one of the founding fathers of the
ICGN and is much loved" said Bill Crist. "His
contribution to improvements in governance world-wide
cannot be underestimated." |
| As Bob Monks, who has himself
received one of the ICGN awards, commented, Alastair was
single handedly responsible for breaking the tradition
of giving retiring CEOs the equivalent to three years’
compensation, regardless of how they had performed during
their tenure and he pioneered shareholder engagement in
Europe, which demonstrated how governance contributes
to improved returns. |
| In accepting the award
in a typically modest fashion, Alastair quoted from Sir
Isaac Newton to say that he felt like he was standing
on the shoulders of giants, including Bob Monks himself
and Sir Adrian Cadbury. “I have really enjoyed
my time with the ICGN, and have made many friends over
the years” he said. “It is very important
going forward that the ICGN is seen to acting in the interests
of the capital system working properly, and that’s
what unites us.” |
| The award nomination
process |
| Candidates
for ICGN awards are nominated by all ICGN Members. Nominations
are reviewed by the ICGN
Awards Committee against established criteria and
names are recommended to the ICGN Board. The Committee,
chaired by Dr Stephen Davis, President, Davis Global Advisors,
comprises Sandra Guerra Managing Partner, Better Governance,
Professor Hasung Jang, Korea University, Business School,
Sophie L'Helias Principal, L'Helias LLC and Jon Lukomnik
Managing Partner, Sinclair Capital. |
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