Current corporate governance priorities are the correct ones, but only address about 10% of the issues that lead to destruction of shareholder value, according to Steve Marshall, former finance director and chief executive of Railtrack.
Speaking at the Institute of Risk management conference, Marshall said the lead cause of the destruction of shareholder value was almost always a blurring of the board's focus on value, rather than a failure of corporate governance process or compliance.
He added: "Directors often lack a clear grasp of their own business model and how, even if, it creates value."
Marshall said when things did go wrong, the board often failed to define explain or demonstrate by its behaviour what the business needed to do.
The current governance priorities will mean fewer surprises in the future, concluded Marshall.
