Corporate governance - creating true value

We just completed our on-going bi-annual events on enhancing board effectiveness with an OUTSTANDING faculty of practitioners under the aegis of the Confederation of Indian Industries (CII) which I co-chair.

One of the aha's for me (which most people would instinctively assume to be true) was that there is empirical evidence to prove that there is a clear correlation between good governance and valuation - roughly 200 basis points.

So what is good corporate governance?

Vladislava Ryabota from the IFC, in her usual inimitable & passionate style, did a great job of explaining this. I'd recommend looking at this site - https://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+CG/

The essence is captured on this slide.

As I've often said governance goes beyond mere compliance - that should be hygiene nowadays.

Boards have to play a KEY role.

So how does your country rank?