Corporate Governance Arrangement for G4S

1964 Words Jul 16th, 2018 8 Pages
1 Executive Summary
This report is going to examine the corporate governance arrangements for G4S, one of the FTSE 100 companies. In this report, research and evaluate of the corporate governance arrangements for G4S will be done by analysing how G4S complies with the UK Corporate Governance Code (‘the Code’) in five main sections of the Code, namely Leadership, Effectiveness, Accountability, Remuneration and Relations with shareholders. At the end of this report, recommendations will be made include the problem of staff diversity, risk management, relations with shareholders and the appointment on board directors. 2 Introduction
G4S plc is a security services company founded in the UK in 2004, it is merged by the UK-based Securior
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This means that participants of the Board are committed to the company that they are willing to make good effort in order to make better decisions to the company, but this also implies that the Board is lack of effectiveness as they cannot make decisions efficiently.

It is easy to understand that the issue of independence will be questioned if a non-executive director has served the same company for the long period of time. According to the Code, a non-executive director’s independence will be questioned if the director has served on the board for more than nine years from the date of their first election (FRC, 2012). Therefore, having completed nine years’ services as non-executive directors, Lord Condon and Bo Lerenius will retire from the board at the conclusion of the company’s AGM in 2013, at which time Mark Elliott will take on the role of senior independent director (G4S, 2013).

After the retirement of the two non-executive directors, the board will then be formed by three executive directors, one non-executive chairman and six other independent non-executive directors.

The Nomination Committee which led by Lord Condon was responsible of selecting the new chairman (assisted by an external recruitment consultant, Zygos) and the three other new non-executive directors (assisted by another recruitment consultant, Spencer Stuart). Mark Seligman, as deputy chairman, was co-opted onto the

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