Just like activist U.S. shareholders monitoring companies, investors worldwide want businesses they own to embrace tougher corporate governance standards, according to a report being released this week.
Global shareholders also would like companies in their countries to disclose more financial data, to adopt CEO pay plans that reward only strong performance and to use independent boards with no ties to management.
The report is by Institutional Shareholder Services, a research and consulting firm that surveyed 320 large investors overseeing $10.5 trillion in assets in 19 countries, including the USA, Canada, Great Britain, Australia, New Zealand, Japan and China.
Randy Hancock, ISS executive vice president for global research, says investors in every market "believe that corporate governance is important and will grow in importance over time."
Some 90% of Chinese investors, for instance, think corporate governance is "a necessary building block for successful capital markets" in China.
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