A third of leading companies have ignored one of the key recommendations of the Higgs report on corporate governance by not conducting boadroom appraisals, according to a new study.
An analysis of the latest annual reports of 85 members of the FTSE 100, by consultancy firm Independent Audit, shows that only two-thirds had completed a board assessment.
Last year’s Higgs report stated that listed companies should undertake a formal and rigorous annual evaluation of their performance, committees and individual directors.
The study also found that only four in 10 companies appraised their directors.
A spokesman for Independent Audit said most companies used some form of self-assessment rather than outside advisers, and many “are waiting to see what their competitors do”.