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News digest 25/6/17: Shorter tenures for CEOs

25 June 2017

News digest 25/6/17: Shorter tenures for CEOs - read more

The latest governance stories in the news

Chief executives in the UK only spend an average of 4.8 years in the job, shorter terms than any other countries except Brazil, Russia and India, according to PwC research. The median tenure was once 8.3 years and has dropped in five of the past six years to stand at its lowest level since PwC began collecting data in 2009. The global average is five years.

John-Paul Barker, UK leader of PwC’s strategy and consulting business, Strategy&, said: ‘Less than five years is a very short time to make real and tangible changes to a business. Stakeholders are demanding ever-faster results, but should consider the long term too to ensure stability.’

 

Drug and alcohol charity collapses

One of the UK’s leading drug and alcohol treatment charities, Lifeline Project, collapsed shortly after the Charities Commission began an investigation into its financial controls. The charity’s administrator, FRP Advisory announced it had completed a transfer of 40 of the charity’s projects, and most of its staff, to the charity Change, Grow, Live. The rest of the staff have gone to local authorities.

 

Proposed legislation threatens whistleblowers

Whistleblowers and journalists could be prosecuted if proposals for a new espionage act go ahead, according to the Campaign for Freedom of Information and rights group Article19. According to the two groups, Law Commission recommendations for a watered down threshold for prosecutions threaten freedom of speech and could even lead to convictions for passing on information discoverable under Freedom of Information requests.

 

 

OECD attacks banks over IPO collusion

Banks are involved in ‘tacit collusion’ to maintain initial public offering fees at unreasonably high rates, according to a damning report by the Organisation for Economic Co-operation and Development. The Paris-based organisation said the average cost of an IPO worth less than $100 million is as high as 11% of the entire transaction and that the big fees are caused by a lack of competition among firms willing to underwrite equity financing.

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