EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 14 Approximately 11.4% of the issuers also identified additional committees in their filings, although there are no specific disclosure obligations relating to such committees. The filings reference a range of other committees, including strategic planning, various risk- and compliance-related, executive, finance and investment, conflicts, human resources, M&A, technology, and quality and innovation committees. Independent Directors on Committees Upon consummation of the IPO, approximately 67.2% of the companies had appointed all independent directors to the three standard committees, and approximately 32.8% did not. 8 Figure 21: N=847. “Phase-In” Provisions Of the 460 companies that did not have all independent directors on the three standard committees, approximately 46.5% relied on the permitted “phase-in” provisions of the applicable securities exchange, and approximately 53.5% did not . 9 Figure 22 : N=460. 8 One company did not disclose information about the independence of members of board committees. 9 The balance of companies that did not have all independent directors on committees upon completion of the IPO were either FPIs relying on home corporate governance standards or controlled companies. Yes; 569 No; 278 All Independent Directors on Committees upon Completion of IPO (By Frequency) Yes No Yes; 214 No; 246 Reliance on "Phase-in" Provisions (By Frequency) Yes No