HVS Executive Search releases annual review of European Corporate Governance
By Chris Mumford and Thomas Mielke, Oct 27, 2010
The HVS Executive Search annual review of corporate governance practices at European hotel companies sees Whitbread take top honours.
The HVS Executive Search annual review of corporate governance practices at European hotel companies
2009 was not an easy year for anyone. Across Europe, the hotel industry saw operators slashing room rates and desperately trying to replace the sudden absence of corporate demand with leisure guests. New supply was still entering the market and major currency fluctuations added to the complexity of the problem. Challenges aside, hotel companies learned how to re-focus on some of the fundamentals of the business: controlling and containing costs and expenses. Some companies went through major restructurings and others saw the weakness of their competitors as a chance to grow their market share. Being able to steer a company through an ever-changing business environment with certainty and confidence is a vital key to success; and it is the board of directors’ responsibility to oversee the strategies which provide the direction for the company. Sound corporate governance is, now more than ever, of utmost importance.
HVS Executive Search reviewed 21 publicly listed European hotel companies. Studying the firms’ annual reports and, where necessary, conducting interviews, the companies were scored on their performance in four key categories:
- Size, makeup and independence of the board
- Committee structure and effectiveness
- Presence of interlocks, insider participation and related transactions
- Commitment to pay-for-performance for executives and director pay
For a third year in a row, the same three companies have dominated the top of our scoring. Click here for a full report on the survey and results.
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