EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 40 Independent Directors on Committees Upon completion of the IPO, approximately 64.3% of the companies had appointed all independent directors to the three standard committees, and approximately 35.7% did not. Figure 61: N=168. “Phase-In” Provisions Of the 55 companies that did not have all independent directors on the three standard committees, approximately 50.9% relied on the permitted “phase-in” provisions of the applicable exchange. 15 Out of all 168 companies, approximately 28.6% reported relying on “phase-in” provisions to comply with applicable exchange requirements. Figure 62 : N=168. 15 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; 108 No; 60 All Independent Directors on Committees upon Completion of IPO (By Frequency) Yes No Yes; 48 No; 120 Reliance on "Phase-in" Provisions (By Frequency) Yes No