01/15/2008
The Ethos Foundation publishes the new edition of its reference document with regard to corporate governance. For the first time, this document is divided into two parts. The first part features the Corporate Governance Principles that set Ethos' best practice standards, while the second one comprises the 2008 Proxy Voting Guidelines that steer Ethos' exercise of the shareholder voting rights.
The Corporate Governance Principles and Proxy Voting Guidelines constitute Ethos' reference both for the dialogue it engages with companies and for the analyses of shareholders' general meetings and voting recommendations. The document aims to formalise the expectations of an institutional shareholder guided by the concept of sustainable development.
The Corporate Governance Principles are grounded on best practice rules with regard to corporate governance and on Ethos' charter based on the concept of Corporate Social Responsibility. They formulate high expectations on the attitude expected from companies towards their shareholders and other stakeholders.
The Proxy Voting Guidelines define in detail how the voting recommendations are established. These recommendations are constructive in spirit as a shareholder should be able to accept the Board of Directors' proposals. However, when such proposals do not coincide with the long term interests of the shareholders and other stakeholders of a company, it is legitimate to abstain or to oppose the proposals of the Board.
In the 2008 edition, the chapters dedicated to the Board of Directors (ch.2), to Executive remuneration (ch. 4) and to the capital structure and voting rights (ch. 5) have undergone an in-depth review. Minor changes were introduced to the other chapters.
The 2008 edition of Ethos' Corporate Governance Principles and Proxy Voting Guidelines is available free of charge in electronic format.
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