In this episode, Lyndsey talks with Lesley Stephenson, Publisher and Owner of Governance Magazine. They discuss the 21 year journey of this global publication.
Introduction and Overview:
- Worked on publishing the first corporate governance code – Cadbury Report on the Financial Aspects of Corporate Governance (2:15)
- Published Greenbury Report on director remuneration and the Hampel Report which reviewed the original Cadbury Code (2:31)
- Publisher of Financial Times Board Director Programme – provides training, development and networking for board directors in their role as director (3:22)
Governance Magazine:
- Governance magazine has actually been going since November 1997 – 23 years (4:32)
- Covers any issue of relevance to boards and investors (5:04)
- Occasionally looks at important developments outside the corporate sector but mainly corporate (5:42)
- Readership (6:24)
• Chairs/CEOs/CO Secs in large listed companies worldwide
• Institutional investors
• Advisors
• Business schools
• Governance professionals
- Main readership is in the UK (50%) and the USA (10%). The audience is truly global, with subscribers in 40 different countries (6:38)
Corporate Governance Over 20 Years Ago:
- Generally boards more resistant, not so well accepted (8:04)
- Heavy emphasis on running companies for benefit of shareholders – this has broadened out to include all stakeholders (9:26)
- No concept of Board Diversity at all (10:13)
Top Moment:
- Publishing an article by Alexei Navalny (11:21)
Top Challenges:
- Time management between the Financial Times Board Director Programme and Governance Magazine (11:49)
- Small team working behind the scenes on Governance Magazine (12:04)
- Good content has not been a challenge (12:30)
Top Changes in Past 21 Years:
- General acceptance of Governance and business as a force for good (13:41)
- Increase in investor stewardship (14:31)
- Board diversity and inclusion (14:53)
- Drivers of change: (16:43)
• Scandals
• Losing money
• Internet
• Social media
Trend of Corporate Governance Development in the Next 5 to 10 Years:
- ESG is here to stay. Climate change needs to be dealt with (19:05)
- Extension of a wider sense of stakeholder engagement (19:22)
- Culture comes from the top (19:43)
- Changes to digital technology, AI and the way we do things (20:02)
- Boards and directors need to be adaptable and open to change (20:28)
Importance of Ongoing Corporate Governance Training:
- Individual directors have the responsibility to make sure they are up to date and that their skills are appropriate (21:31)
- Other professions expect specific training and CPD (Continuing Professional Development) (23:10)
- Governance Magazine helps board directors by keeping them up to date across a range of topics (23:39)
