'Box ticking' not enough to improve corporate governance

Relying on regulators is simply not enough to improve governance for the UK’s biggest companies. That’s according to a new report from the Institute of Directors (IoD).

The report says that the current approach to defining what is, and isn’t, ‘good governance’ is faulty.  

The current governance code is conducted on a ‘comply-and-explain’ basis. It sets out the make-up of boards, for example, the splitting on the position of CEO and chairman.

Ken Olisa, chairman of the report’s advisory panel doesn’t think that regulators can be relied upon to improve governance. She says: “The UK seems to have learned little since the financial crisis, sticking to a prescriptive set of attributes aimed at creating the cardboard cut-out perfect company.