REPORT

Getting smart about governance
And its link to financial performance

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Sarah Bell

30 Jan 2019

A Simple truth

Good governance drives success. It’s a fact. We can prove it.

Companies that consistently invest in their decision-making infrastructure outperform those that don’t. It’s that simple.

So if you’re still approaching the UK Corporate Governance Code (the Code) as tickbox exercise then two things are true. One, you’re being left behind and two, you need to read this report.

What will you learn from the guide:

  • Why the corporate rate cut is only part of the picture
  • Why the corporate rate cut is only part of the picture
  • Why the corporate rate cut is only part of the picture

Strong governance drives success. We can prove it.

Companies that consistently invest in their decision-making infrastructure outperform those that don’t.

So if you’re still approaching the UK Corporate Governance Code as a tick-box exercise then two things are true. One, you’re being left behind and two, you need to read this report.

Drawing on a decade of data, from 10 different industries and 500 FTSE 350 companies ‘Getting smart about governance’ not only proves the link between strong governance practice and growing financial performance, but pinpoints the key areas to focus on to transform your ability to create and retain value.

In short it doesn’t just tell you why you need to change your approach to governance, but crucially how to go about it.

The research

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Ten years of data

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Across ten industries

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FTSE 350 businesses

Result

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£8.2 million in growth capital raised

Production

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Increased by 300%

Beyond a 'nice to have'

Far from seeing it as a necessary evil our research shows that the most successful companies are using the corporate governance code as a blueprint to build environments that foster growth. They are aligning resource to clearly articulated goals and the results speak for themselves.

Companies consistently investing in governance best practice:

  • deliver double the total shareholder returns than companies failing to invest in decision making frameworks
  • remain twice as likely to retain a FTSE 350 capitalisation as companies scoring lowest for quality of governance.

Turnover

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106% growth since 2014/15

Turnover

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106% growth since 2014/15

Sector

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Leisure and consumer

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10 years of data

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Across 10 industries

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FTSE 350 businesses

Beyond a 'nice to have'

Far from seeing it as a necessary evil our research shows that the most successful companies are using the UK Corporate Governance Code as a blueprint to build environments that foster growth. They are aligning resource to clearly articulated goals and the results speak for themselves.

Companies consistently investing in governance best practice:

  • deliver double the total shareholder returns than companies failing to invest in decision-making frameworks
  • are twice as likely to stay in the FTSE 350 as companies scoring lowest for quality of governance.

Invest for impressive returns

What’s more, even companies just starting the journey from lowest-scoring to highest-scoring governance practices saw impressive returns. So, the only non-viable course of action is ‘business as usual’.

Turnover

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106% growth since 2014/15

Turnover

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106% growth since 2014/15

Sector

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Leisure and consumer

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44% increase in operating cashflow

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46% increase in free cashflow

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10% improvement in operational efficiency

What you can do

Download the report. Not only will it outline the benefits of putting strong governance at the heart of your business model, but also the six key areas of investment you should be focusing on to start transforming your business.

Beyond that we are ready to help you in any way we can. From helping get the board on board, to developing a plan, to delivering change, we can assist you every step of the way.

Turnover

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106% growth since 2014/15

Turnover

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106% growth since 2014/15

Sector

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Leisure and consumer

Turnover

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106% growth since 2014/15

Sector

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Leisure and consumer

Team

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Employs 55 people

Have the tax guide delivered to your inbox

The Tax Cuts and Job Act has been a boon to corporations. Our guide details the many ways your business can benefit from tax reform, as well as some surprising pitfalls to avoid.

What will you learn from the guide:

  • Why the corporate rate cut is only part of the picture
  • Why the corporate rate cut is only part of the picture
  • Why the corporate rate cut is only part of the picture

Making the only non-viable course of action ‘business as usual’.

What you can do

Download the report. Not only will it outline the benefits of putting good governance at the heart of your business model, but also the six key areas of investment you should be focussing on to start transforming your business.

Beyond that we are ready to help you in any way we can. From helping get the board on board, to developing a plan, to delivering change, we can assist you every step of the way.

Governance is the key to success. Used correctly the corporate governance code becomes a blueprint for growth. These are proven facts. The only real question is what you will do with them.

"Governance is the key to success. Used correctly the UK Corporate Governance Code becomes a blueprint for growth. These are proven facts. The only real question is, what will you do with them?"

Sarah Bell
Partner, Governance and Board Advisory

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Related contacts

Partner

Alan Dale

London

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