GLOBAL - The Australian Council of Superannuation Investors (ACSI) has accused ASX-listed companies of failing to uphold corporate governance policies and practices outlined in their annual reports.
ACSI’s criticism comes hot on the heels of the National Australia Bank (NAB) forex scandal which has cost the bank A$360m and spurred the resignation of chief executive Frank Cicutto and chairman Charles Allen.
“What recent events at the National appear to show is that key risk management oversight functions, a cornerstone of effective governance, were not properly effected in the organisation,” said Phillip Spathis, executive officer, ACSI.
“Whilst large payouts made by companies to senior executives who are perceived to have responsibility for failure continue to be a significant problem, this should not deflect attention from other issues relating to failings of governance and management of risk in listed companies that are the clear responsibility of the board.”
John Stewart, former head of NAB’s UK operations has taken over as chief executive and Graham Kraehe has been appointed chairman. Results of a PwC-led investigation into the forex scandal are due out in March.
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.