WASHINGTON, DC – Public confidence in the running of financial institutions will not be restored without major reform to the way their boards operate. This is a key point in Issues Concerning Effective Corporate Governance, a statement published today by the British-North American Committee (BNAC), which last year was an outspoken early advocate of the need for the respective countries to review their mounting public sector pension liabilities.

The BNAC statement makes the following recommendations:

1)    Transparency in both the balance sheet and income statements of financial institutions
          a.     Including more information provided on asset quality, liquidity and contingent liabilities
2)    Strengthen regulatory oversight by eliminating overlapping regulatory responsibilities among different agencies
3)    Restore public confidence in the way financial institutions are run (primarily the responsibility of the Board of Directors) by:
         a.    Eliminating restrictive terms of service
         b.    Separating of the roles of Chairman and Chief Executive Officer
         c.    Selecting Board members by nominating committee based on their relevant expertise and experience
         d.    Briefing the Board on respective revenue, net income and risk contributions
         e.    Creating procedures for the Board to monitor and manage risks
         f.    Structuring executive compensation based on performance of the company over a three to five year horizon focusing on its financial strength and market competitiveness

Launched in 1969, the British-North American Committee (BNAC) is a group of leaders from business, labor, and academia in Canada, the United Kingdom and the United States committed to harmonious, constructive relations among the three countries and their citizens.  BNAC is sponsored by three non-profit research organizations – the British-North American Research Association in London, the Atlantic Council in Washington, and The Massey College of the University of Toronto.  William E Mayer, Founder, Park Avenue Equity Partners; Sir Paul Judge, Chairman, Schroder Income Growth Fund plc, and Derek Oland, Executive Chairman of Moosehead Breweries Ltd, are respectively the US, UK and Canadian co-chairmen.  David Wilson, President and CEO, Graduate Management Admission Council, is Chairman of the Executive Committee.