Governance News 29 May 2019

60 minute read 28.05.2019 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue features (among other things) an overview of APRA's information paper, Self-assessments of governance, accountability and culture and the findings to emerge from APRA's analysis.

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United States | US companies who pay men more than women to face fines? Presidential hopeful, Senator Kamala Harris has reportedly said she will take executive action to create an 'equal pay certification' scheme if elected

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Scope 3 emissions a bridge too far? BP shareholders have voted overwhelmingly in favour of a shareholder resolution calling on the company to align its business operations with the aims of the Paris Agreement, but a second resolution calling on BP to set emissions reduction targets for all emissions failed to secure sufficient support to pass
The Climate Action 100+ proposal will not be considered at the Exxon Mobil Corporation AGM, triggering supporters of the resolution to threaten to vote against the Exxon board
The AFR reports that in a speech to industry, Shell's most senior Australian representative has called (among other things) for the oil and gas industry to develop a united industry position on climate change
Germany | Hermes EOS has given a 'final warning' to companies to act to increase gender diversity in leadership roles
Eight shareholder proposals on a range of governance and product issues at Facebook
Woolworths' shareholder (Perpetual Investments) is reportedly exerting pressure for it to exit its pubs and pokies business

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The majority of Australia's largest 50 superannuation funds are failing to support a majority of shareholder proposals on ESG issues according to a new report from ACCR

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United States | SEC will hold a Staff Roundtable on Short/Long Term Management of Public Companies, the periodic reporting system and regulatory requirements

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Superannuation reform agenda? The AFR reports that Treasurer Josh Frydenberg has outlined plans to progress a number of superannuation reforms
The AIST is calling on the government and industry regulators to develop a superannuation fund comparison tool to assist consumers to make more informed decisions
AFCA has announced plans to expand its leadership team to support its rapid growth and the expansion of its jurisdiction
APRA uses new directions powers for the first time: APRA has issued directions to IOOF group for failing to comply with licence conditions
United States | The FSB has launched a review of the of 2008 'too big to fail' reforms

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Professional investors are unconcerned about audit quality? 93% of professional investors in Australia rate audit quality as either 'average' or 'above average' according to an AASB/FRC report
New Zealand | The Financial Markets Authority has issued a report highlighting the expectation gap between what investors expect and what auditors deliver
IFIAR has released its annual audit inspections survey: Audit quality globally appears to be improving but the findings indicate that a 'sustained focus' on continual improvement is needed IFIAR writes
In Brief | The UK Financial Reporting Council (FRC) has published its Plan & Budget for 2019-20. It's first priority is supporting the transition to the new regulator the Audit, Reporting and Governance Authority (ARGA). FRC CEO Stephen Haddrill said that 'the FRC will do all in its power to promote transparency and integrity in business, and improve audit quality, corporate governance and investor stewardship

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Top Story | APRA says weaknesses identified in the CBA report are not unique to the CBA
Risk management needs a rethink? The AFR quotes a number of business leaders as suggesting that the way in which risk has historically been managed needs to shift in line with changed expectations/the changed business environment
In Brief | The AFR reports that Australian companies appear to increasingly conservative in appointing CEOs, with a high proportion of the 15 CEOs from financial services companies who have left their roles since April replaced with internal candidates

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ASIC has banned a former financial adviser from managing companies for five years following his involvement in 14 failed financial services companies

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Reportedly 21 CEOs and Chairs from financial firms (investment banks, super funds and accounting firms) have pledged their support for the Uluru Statement from the Heart and its call for the establishment of a First Nations voice in the constitution

Contact

Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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Governance News 29 May 2019

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