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According to a report by ACGA and CLSA, the Hong Kong-based research group and brokerage: In Asia, "much of the improvement is in form making publicly stated commitments to good corporate governance, setting up board committees and appointing nominally independent directors".
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Gerry Grimstone, chairman of Standard's remuneration committee, said: "This was very much [Sandy Crombie's] personal decision but is completely in line with our strong commitment as a company to good corporate governance".
Morgan Stanley says the move amounts to good corporate governance.
Corporate governance activists have pressured many companies to eliminate this defense, but this may not be a sign that companies have converted to good corporate governance policies.
Laura Jeresky, an analyst with Tweedy Browne, says this has created a culture that is anathema to good corporate governance.
"Aside from any issues related to good corporate governance, this may actually hamper the development of the next generation in their long-term role," Mr. Fung said.
It would be a blow to Calpers, which has used its institutional clout for years to promote good corporate governance and truth in accounting.
Additional resources must be joined to key institutional reforms to ensure effectiveness: greater coordination and a clearer division of labor; an increased commitment to transparency, accountability, and good corporate governance; an increased capacity to innovate and achieve demonstrable results; and greater attention to the needs of the poorest populations.
It is natural that the central government uses its directly controlled firms to showcase good corporate governance.
These companies are also buffeted by increasingly vocal institutional investors that pressure the companies to adopt good corporate governance.
"And secondly, companies are keen to be seen to be following good corporate governance and becoming more environmentally friendly.
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