The New Normal – A summary report on the corporate governance of Europe’s top 25 banks

Nestor Advisors have released a summary report of the governance of Europe’s 25 largest European banks. Starting from the premise that the “new normal” for the banks consists in more simplicity, more frugality and a focus on risk, the Report looks at board profile and practices through the lens of performance, asking the question: do better performing banks have certain common board characteristics?

Nestor Advisors finds that boards of the best performing banks are on average smaller and work harder while their members have fewer outside commitments. They and their chairmen have been there for a longer period than their worst performing peers.

They pay their CEO, chairman and NEDs more and put their members to the ballot more often. There is of course a caveat: a number of practices ranging from gender diversity to executive and NED remuneration seem to be linked as much to national culture as they are to performance.

To obtain a complimentary copy of the report, please complete the online registration form (2012 Banking Study) by clicking here.

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