Knowing exactly what preoccupies boards of directors at large Spanish companies could reveal the strengths and weaknesses of the Spanish corporate system. This is the aim of the study "Prácticas de Gobierno Corporativo" ("Corporate Governance Practices"), led by IESE Professor José Manuel Campa and KPMG managing partner Tomás López de la Torre. Based on a survey of the chief executives at the largest grossing companies in the Spanish market, the report shows that directors worry most about adapting to change, sticking to the budget and losing market share.
This should not be surprising if we consider that directors spend around 50 percent of their time evaluating and approving the company's strategy and tracking its economic and financial progress. Directors must also make certain their practices adhere to "Recommendation Number 8" of the Spanish Unified Code of Good Governance, which considers that boards of directors perform more of a control function than a management one within a company.
Questions related to financial and risk management in organizations have been the subjects of most of the reforms introduced by boards in the past four years.
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