This program showed practical ways to business owners, board members and top executives how by adhering to high corporate governance standards companies can get 10-40% valuation premiums, reduce their interest rates on loans by up to 0.5% and attract foreign investments. By adopting leading corporate governance practices like recruitment of independent professional board members or separation of management and steering roles, companies can strengthen their competitiveness on the global markets, increase their performance and transparency, and lower risk of corporate failures.
The focus of the program is Corporate Governance and the above objectives which are attainable only through adoption of leading governance practices. The program is particularly relevant to the Baltic business and especially today as it deals with issues like how to attract foreign investments, how to build better resilience to crises, how to raise competitiveness on the international markets. The speed and sustainability of recovery of the Baltic economies largely depends on how well the Baltic companies will address these challenges.
"Today the Baltic business needs not only look for what short-term recovery measures to adopt or where to borrow money but focus on the strengths supporting its long-term competitive edge on the global arena. I believe that adoption of high corporate governance standards is today of primary importance to large, medium and small, privately and state-owned companies in the Baltic region", - says Arminta SaladÅ¾ienÄ—, Chairman of the Executive Committee of BICG and Chairman of the Board, NASDAQ OMX Vilnius.
Antanas Zabulis, President of Omnitel, BICG Board member and alumni, adds: „The program is very relevant and a must for every owner, board member and senior manager. I feel responsibility of a true Corporate Governance ambassador and recommend this program to all my colleagues". Tomas KuÄinskas, President of Carlsberg Baltic, assesses his experience at BICG: "It is probably the best Institute in the region which teaches how to direct and control your company".
At the same time the Baltic Corporate Governance Board gathered for the first time to approve the strategy of the BICG and discuss further initiatives. It was agreed to work actively also in Estonia and Latvia in 2010, to offer top class education on corporate governance for businesses, public sector, and media, as well as to develop and maintain corporate governance guidelines for Baltic companies
BICG also aims to establish close relationship with international bodies active in the corporate governance area as well as peer organizations in other countries to bring up-to-date knowledge and experience to the Baltics. BICG will work for alignment of the Baltic corporate governance practices with the best international practice and will advocate the Baltic governments for professional independent directors in state controlled companies.
More information about the Baltic Institute of Corporate Governance can be found on the web:
Notes for editors:
Value of good Corporate Governance
Good Corporate Governance ensures that both public and private companies are run as efficiently as possible in the interests of their shareholders and other stakeholders. This in turn promotes greater confidence in the companies on the capital markets and creates better conditions for the supply of risk capital.
The main benefits for companies adopting the Corporate Governance principles are:
Easier access to capital and lower capital costs for well-governed companies:
10-40% premium valuation of the company;
Up to 0.5% lower interest rate on loans;
Ability to attract foreign investments;
Ability to compete on the global markets with experienced outsiders on the traditionally closed board of the Baltic companies;
Separation of management and control leading to lower risk of fraud and corporate failures.
Good Corporate Governance leads to faster and more sustainable economic growth and job creation.
About the Baltic Institute of Corporate Governance (BICG)
BICG is a non-profit corporate governance initiative that:
Advances the Corporate Governance agenda in the Baltic states
Educates and certifies Professional Board Members in the Baltic states
Provides guidance on Corporate Governance for small, medium-size and large companies in the Baltics - both in the private and public sector
Seeks to improve the understanding of good Corporate Governance and the value of adhering to established corporate governance principles
Baltic Institute of Corporate Governance pursues first class competitiveness and transparency of Baltic public, private and state owned companies through promotion of leading corporate governance (CG) practices.
Baltic Institute of Corporate Governance is the first name in corporate governance in the Baltics. As a NGO initiative BICG provides value to its stakeholders through leading corporate governance education, development, promotion and networking.
Baltic Corporate Governance Board
An authoritative Baltic Corporate Governance Board consisting of the Baltic business leaders is established to promote corporate governance and provide guidance on best practice. The Baltic Corporate Governance Board consist of
- three members from Estonia: Heldur Meerits, Council Member at LHV Pank; Ian Plenderleith, CEO of Tallinna Vesi; Veikko Sepp, CEO of Ericsson Estonia, Latvia and Lithuania;
- a member from Latvia: Ieva Plaude-Roehlinger, Chairperson of the Board, Kolonna (two other members from Latvia will be elected);
- three members from Lithuania: Rolandas Barysas, CEO and Editor in Chief, Verslo Zinios; prof. Viktoras Butkus, Chairman of the Board Fermentas International Inc.; Antanas Juozas Zabulis, President, UAB Omnitel;
Professional Board Member education
The curriculum of the BICG Executive Education is based on the Directors' program from the Stockholm Chamber of Commerce and Corporate Governance Leadership Resources from International Finance Corporation/Global Corporate Governance Forum. It was delivered by distinguished experts in the field of corporate governance. Such topics as responsibility and roles of the shareholders, executive and non-executive board members, directors' responsibilities, laws and regulations, risks and crises, sustainability and stakeholders were covered in educational sessions. The education has ended with a written examination and certification of Professional Board Members. The next Baltic Executive Education program for professional board members will be held in May 2010.
For additional information:
Kristian Kaas Mortensen, Member of the Executive Committee, BICG
+370 611 133 44