Ocado Group: ASX Corporate Governance Council (NED)

1280 Words3 Pages

I. INTRODUCTION

Ocado Group Plc is a UK online supermarket that delivers food and household goods. This report will focus on the analysis of the Nomination and Remuneration Committees in relation to the role of the Non-Executive Director (NED).

The NED does not take part in the management of the company but is there to provide outside information that executive directors lack. NEDs are also there to evaluate appointment of directors and the appropriate levels of executive pay. The reason why independent NEDs are required is because they bring impartial assessment in the board’s decision-making. (Coyle, 2015, p.75-78). Their independence is determined by their business and personal relationship to the company, whether direct or indirect. …show more content…

It is a flexible reporting scheme; with eight core recommendations companies must follow to move away from corporate governance’s legal requirements. It gives guidance on each one of them and is made of 21 group of stakeholders, which seems much more supple than the authority structure of the Financial Reporting Council. (FRC, 2012b)

Perhaps what Ocado fails to clarify is where the Code states “deviation from a particular provision is intended to be limited in time, the explanation should indicate when the company expects to conform with the provision”. (FRC, 2014) This is because Ocado repeats the same explanation in its reports, which might not work in the long run as it will be a poor explanation. Shareholders will be more caution in their votes, worth noting is the 8% of shareholders voting against the re-appointment of Jörn Rasing in the 2015 Annual General Meeting. (Investegate, 2015) II.2.2. Experience over Independence

This ‘board independence’ the Code emphasises made academics wanting to assess the connection between ‘independence’ and its benefits to the company’s corporate

More about Ocado Group: ASX Corporate Governance Council (NED)

Open Document