Directors are facing unprecedented scrutiny following many high profile cases that were uncovered by the Hayne Royal Commission, AUSTRAC, the media or were self reported. Many executives have either resigned, been terminated or have had their pay cut as a result.
Investors and proxy advisors also expect that non executive directors are held to account for perceived failures. Investors are dissenting at the AGMs of issuers where these failures occurred, but personal accountability is also being assigned to individuals and they are being targeted by investors at other organisations where they hold board positions.
Following the Hayne Royal Commission, directors are expected to have a greater grasp on company culture including the setting, monitoring and articulation of it.
As non-executives, directors may have limited ability to influence culture, but this expectation highlights the ever-expanding role of directors.
Read the full article including practical tips on what you can do.