French asset management body AFG has published its 2018 recommendations for company governance.
French asset management firms hold around 20% of the CAC 40 and of the SBF 250’s floats as well as a quarter of the CAC Small 90 constituents’ float, making them the second main investor in French equities.
Among key highlights of the report, AFG emphasises on the necessity for French companies to increase the share of women members within their executive committees.
The association says this will “ease the representation of women in administration boards and contribute to a better management of human resources.”
Another recommendation from AFG is the importance for the administration and supervisory board members of French companies to be in line with their corporate cultures. AFG says that asset managers should particularly look at social and environmental aspects of companies at a similar level to that of consolidated accounts.
The French asset management body underlines that the risk map of French listed companies shall include cyber-risks and must be shared with across their boards. So shall also be organisational procedures for crisis management.
In addition, AMF calls for more precise information regarding transparency over remuneration policies, and especially the variable share of remuneration. The association also wants any modification to French companies’ administration boards to be systematically shared with shareholders.
To read the full report, click here.