Since then the volatility is extreme on stock exchanges read belowThe State could instead renew the existing tariffBut with the feeling of being at a time hinge no doubtOur Autonomous University has only thirty years oldYou would well like to predict the great eveningHowever the Indian economy faces on bottlenecksThe impact of this crisis may yet be manyEconomic financial market and confidence crisisAs especially losses cited by the CrownThe Prime Minister spoke ten days ago the risk of dilution of the PSAre French corporate governance practices adapted to their profile, their activities and their ambitions This is the question raised by the firm of Ernst & Young, in a study conducted on a sample of 57 companies of the compartment "A" of Euronext Paris (the "bigcaps"), representative in terms of sector, size (income, capitalization and actual) and dispersion of the capital. To respond, the authors begin by comparing governance practices, presented in the annual report 2006, "best practices" enacted by the competent institutions in dozen of recommendations reports published since the famous Vienot I report in 1995.
Independence
Overall, the "bigcaps", and in particular the CAC 40 companies, better meet standards of governance than medium-sized companies. Their Board has on average 12 members, against only 6 in the "midcaps", and the proportion of members with executive functions is lower (12 vs. 34). However, the Councils have a deficit of diversity, with only 15 of foreigners and 8.5 of women (compared to about 20 in Scandinavia). Adhering to the concept of independence, 90 of large corporations have included in their Council of independent members, compared to 51 the mean values, and 88 refer explicitly to recognized criteria, generally those of the button-Afep-Medef report, which appear as the "French place criteria." The study poor passing the theory of inbreeding, showing that on 1.167 directors of "bigcaps", only 198 (or 17) have more than one mandate. However, their influence is stronger that this figure is the implies, because they accumulate 34 of the voting rights. The concentration is also higher in the CAC 40, where 79 members of Councils carry out 35 of the voting rights.
Annual reports indicate that the boards of large corporations meet on average 7.5 times per year, versus 6.4 for the average values, for an equal attendance rate (86). But the level of information provided on the means of actions of the Council perfectible rest: 98 of companies do not specify the budget and resources allocated, and only 15 indicate that members have access to training, while the role of the Secretary General is formalised in only 40 of cases.
Transparency
The study is also the point on remuneration. Administrators on average cash 38.200 euros of attendance fees, but this figure exceeds 60,000 euros in 18 of the companies of the compartment. The Chief Executive Officer, his average gross annual earnings is EUR 1.48 million, or $ 2.1 million in the CAC 40. And only 5 of the phare index companies link the variable part in the action. Information gained in transparency, since 80 of the "bigcaps" detail the modalities for the determination of the remuneration of the Executive.
For the authors of the study, governance profiles are largely determined by the challenges facing companies. "As soon as a company faces the complexity, internationalization or development subsidiaries, the structuring of its governance are strengthened," notes Dominique Pageot, a partner at Ernst & Young. He finds "a stronger appetite to governance in regulated sectors or the economic model is fast, such as high technology and the media", which "supports the idea that good governance is at the service of sustainable performance. Among the areas for progress, Dominique Pageot refers to "the opening and the internationalization of advice", especially for very international companies. But also the improvement of the terms of dialogue with shareholders at general meetings, and strengthening the capacity of action of the Board of Directors.
