Investors’ signal that regulators must enforce board composition norms for PSEs

Institutional investors no longer have the patience for the lack of compliance by PSEs on board composition. In the 2020 voting season, investors have pushed back on board appointments/reappointments: 26.6% of the 188 resolutions for director re-appointment proposed by these 45 PSE’s had more than a 20% institutional investors voting against, of which 3.2% had between 40-50% and 4.3% more than 50% against. It is time that regulators step in and enforce compliance for board composition norms at PSE. Better governance leads to better valuations which will help achieve our disinvestment goals.

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