Governance & Stewardship Principles and Policy Guidelines strengthened
12 December 2013
Standard Life Investments, the global investment manager, has announced that it has strengthened its long-standing Governance & Stewardship Principles and Policy Guidelines, which are used to assist in the evaluation of corporate governance at companies in which Standard Life Investments invests, or might invest, clients’ assets.
The revised Guidelines will be applied on a global basis. A notable change to the Guidelines is the inclusion of a new section entitled “Values and Business Practices”. In addition, specific reference is made to Standard Life Investments’ support for arrangements that would require directors and senior executives to retain an appropriate proportion of the shares they own after they leave a company.
Commenting on the new Principles and Policy Guidelines, Guy Jubb, Global Head of Governance & Stewardship, said:
"Our new Principles and Policy Guidelines provide our investment team with a global framework to help enhance our evaluation of the governance of companies, which is an increasingly important component in our stock selection process. Corporate values and business practices are new ingredients. We shall not only be looking to boards to demonstrate how they have ensured that their values and standards of business practice are implemented but also progressively hold them to account for doing so."
The new Principles and Policy Guidelines will be effective from January 2014, following which regional voting guidelines will be developed to assist the investment team in putting the Guidelines into practice in a voting context.