ACSI’s inaugural Board Confidence Survey: A Report on Institutional Investor Confidence in Boards of S&P/ASX200 Companies found that institutions were confident with the performance of boards, which were marked on a five-point scale.
“The first year of the survey shows that institutional investors are generally confident in the performance of Australian S&P/ASX 100 boards,” ACSI chief executive Ann Byrne said.
“This is positive for Australian companies and consistent with the view that Australia’s governance infrastructure compares well with that of other advanced countries.”
“The level of trust and confidence placed in directors of listed companies is also an important intangible factor in the health of the Australian economy.”
On the survey scale, 5 indicated a high degree of confidence while 1 indicated a low degree.
ACSI found that the highest levels of confidence were expressed in boards having ‘relevant business experience’, at 3.53; acting 'in the interests of all shareholders’, at 3.36; and being competent at ‘setting strategy’, at 3.27.
In contrast, the lowest levels of confidence were seen for the “oversight of mergers and acquisitions”, at 2.96, and “independence from management”, at 2.95.
Ms Byrne said the results will be used by ACSI to engage with listed companies on governance issues.
“Whilst the board confidence survey results represent the views of institutional investors, the project is also enormously important for asset owners,” Ms Byrne said.
“ACSI intends to use this platform to lead meaningful dialogue among investors.”
