Material elaborado para utilização exclusiva nos cursos do IBGC.
Leonardo [email protected]
Cairo, May 4, 2009
Training Directors
- The Brazilian experience -
Material elaborado para utilização exclusiva nos cursos do IBGC.
Agenda
TRAINING DIRECTORS: THE BRAZILIAN EXPERIENCE
Target audience
Design of training courses
Successes and failures of initial training courses
Challenges faced in delivering training programs
Range of training programs offered
Cost and revenues generated by training programs
Role of the IBGC board’s training committee.
Material elaborado para utilização exclusiva nos cursos do IBGC.
Target Audience
o Different audience than in MBA and Law Schools
o Non-listed as well as listed companies
o All corporate governance players• Shareowners/shareholders• Heirs/successors• Directors • Retiring executives• Pension fund analysts• Auditors
o Varied age groups and backgrounds.
EARLY CHOICES
Material elaborado para utilização exclusiva nos cursos do IBGC.
Design of Training Courses
o Practical, case-based classroom discussions
o Teaching by CG practitioners for enhanced credibility
o Volunteer lecturers and borrowed classrooms in the beginning
o No foreign jargon and slogans
o Punctuality and dress code as in boardroom practice
o Independence through financial sustainability.
STRATEGIES FOR AN UNIQUE SELLING PROPOSITION
Material elaborado para utilização exclusiva nos cursos do IBGC. 5
WHAT IS CORPORATE GOVERNANCE?
(example of a practical approach)
Material elaborado para utilização exclusiva nos cursos do IBGC.
Empresário
FinanceMarketing Operations
Command and control management
The Boss
6
Material elaborado para utilização exclusiva nos cursos do IBGC. 7
Board of Directors Fiscal Council
Owners
CEO
FinanceMarketing Operations
IndependentAuditors
Corporate Governance x Management
“Management”
“Governance”
CEO
Committees
Material elaborado para utilização exclusiva nos cursos do IBGC.
Successes and failures
FAILURES o Direct mailing not effectiveo Very few students in first yearo Patchwork of lectures, no common messageo Occasional conflicts of interesto Mixed results of volunteer contributions (no free lunch).
8
SUCCESSES
o Personal commitment of well-known business leaderso Synergies with other IBGC eventso The IBGC Code of Best Practices (1999) and the OECD Principles (2000)o Launch of the Novo Mercado (a new stock exchange listing) in 2001o The 2003 Latam ToT program (GCGF/CIPE and Yale University)o The 2009 CG Board Leadership Resources Kit.
Material elaborado para utilização exclusiva nos cursos do IBGC.
Challenges faced in delivering training programs
o Focus on governance, not on management issues
o Implementation of a no-soliciting policy for teachers
o Lack of communication skills by some teachers
o Updating course content and format
o No debate of political issues and public governance
o Promotion of in-company programs.
9
Material elaborado para utilização exclusiva nos cursos do IBGC. 10
Code of conduct for members
Material elaborado para utilização exclusiva nos cursos do IBGC.
Range of training programs offered
Course Hours Price US$ US$/h
Director training 72 5.545 77
Family companies 24 1.659 69
Financial control 16 1.091 68
CG Tools 16 1.091 68
Code of best practices 16 1.227 77
Board Case (role play) 14 2.205 157
Advanced course 24 1.932 80
In-company courses: US$ 818/hour plus expense
Total of 4.500 students since 1998
Material elaborado para utilização exclusiva nos cursos do IBGC. 12
Director course
26 editions since 199860% of course revenues in 200872 hours (8 days) over 4 months
Average student age: 49
IBGC accreditation
Program launched in March 2009
Material elaborado para utilização exclusiva nos cursos do IBGC. 13
IBGC Members and students
Student average age:
Director course 49
Other courses ~ 45
Occupation:
Owner/Director 20%
C-level executive 38%
Other 42%
Material elaborado para utilização exclusiva nos cursos do IBGC. 14
Training of Trainers in IBGC classroom
Material elaborado para utilização exclusiva nos cursos do IBGC.
New Headquarters in 2008
350 sq. mts. Library
1 boardroom 1 classroom/ meeting room
More comfort for members Own classoom
More committee members More comfortable and
pleasant workplace
Material elaborado para utilização exclusiva nos cursos do IBGC.
Cost and revenues generated by training programs
16
Revenues US$ 2000 2001 2002 2003 2004 2005 2006 2007 2008
Membership fees 35.639 47.017 78.681 127.502 154.291 266.842 333.941 458.861 555.966
Monthly events 13.059 13.900 17.278 38.224 72.263 51.380 69.415 73.934 68.799
Course fees 172.661 184.162 210.170 281.016 420.685 501.307 565.165 972.267 1.364.376
Annual Congress 57.850 57.665 82.142 117.741 117.185 160.827 219.360 384.406 317.504
Sponsors 20.227 24.773 55.412 57.509 116.665 271.444 284.448 95.688 152.020
Total IBGC revenues 299.437 327.517 443.684 621.991 881.090 1.251.801 1.472.330 1.985.155 2.458.665
Course fees in % 58% 56% 47% 45% 48% 40% 38% 49% 55%
Material elaborado para utilização exclusiva nos cursos do IBGC.
Role of the IBGC training committee
17
o Initially operational, now “consulting board” role
o All-volunteer members
o Evaluation of current course offerings
o Benchmarking of local and international initiatives
o A channel for IBGC member engagement
o Recommendations of new programs and contents.
Material elaborado para utilização exclusiva nos cursos do IBGC. 18
QUESTIONS ?
Material elaborado para utilização exclusiva nos cursos do IBGC.
Protection of minority
shareholders
A management
tool
Business ethics
Conflict of agency
New stock exchange
listing rules
Sarbanes-Oxley act
A new control system (IFRS)
Corporate
Governance
What is Corporate Governance?
19
Material elaborado para utilização exclusiva nos cursos do IBGC. 20
Brazilian Institute of Corporate Governance
Non-governmental organization
Not-for-profit
Founded in 1995
Dedicated to the development and promotion of Corporate Governance in Brazil
Headquartered in São Paulo, with chapters in PR, RJ and RS
Material elaborado para utilização exclusiva nos cursos do IBGC.
1999 2001 2004
Code of Best Corporate Governance Practices
Material elaborado para utilização exclusiva nos cursos do IBGC.
Events
Monthly breakfasts and luncheons SP – 756 people (8 meetings + annual awards) PR – 292 people (6 meetings) Rio – 280 people (4 meetings) South – 171 people (6 meetings)
Forum of Debates (SP) 4 meetings 131 members
Material elaborado para utilização exclusiva nos cursos do IBGC.
Annual Conferences
Material elaborado para utilização exclusiva nos cursos do IBGC.
Theme Agenda
2004 - Brazilian Corporate Governance Model
2005 – The Stakeholders’ View
2006 – Board Effectiveness
2007 – Sustainability and Governance
2008 – Ownership Structures
Material elaborado para utilização exclusiva nos cursos do IBGC. 25
Surveys and publications
Material elaborado para utilização exclusiva nos cursos do IBGC.
Research and Knowledge Center
English version of the book “Corporate Governance at Family Companies – Highlights in Brazil” (hard copy in 2008)
ISE/Bovespa Board compensation and structure Assessment of board members and boards Privately-held family companies Sustainability Examination Guide Corporate Governance at Swedish multinational
subsidiaries in Brazil Valor Econômico – Special Section on Corporate
Governance
Material elaborado para utilização exclusiva nos cursos do IBGC.
Annual Awards
2006 2005
2004
Material elaborado para utilização exclusiva nos cursos do IBGC. 28
Publications by committees
Material elaborado para utilização exclusiva nos cursos do IBGC. 29
Policy paper
“The board members’ independence – Best Practices and Article 118 of Corporate Law”
The need to align paragraphs 8 and 9 of Article 118 to good corporate governance practices, enabling the board of directors to remain independent
Material elaborado para utilização exclusiva nos cursos do IBGC.
2002 -2008 Strategic Planning
Project Actions Status
Department of studies and development of ideas
Center for Research and Knowledge, Governance
Sections, SurveysImplemented
Assessment system for corporate governance practices
The IBGC Corporate Governance Award
Implemented
Educational program on corporate governance
A diversity of Courses Implemented
Debates with quality partnerships
Debate Forum and non-academic partnerships
Implemented
Efficient information technologyInternal technology updated,
new websiteImplemented
Internal committees with intensive member participation
Membership Committees Implemented
Library, auditorium, meeting rooms, and rooms equipped with
audio-visual resources
Expansion of headquarters on the 19th floor
Implemented
Material elaborado para utilização exclusiva nos cursos do IBGC.
2007 -2012 Strategic Planning
Project Recommendations Status
Certification system for board members
Creation of a structure to enable certification, and redesign of
board member database Project approved by the board
Structure of distance-learning courses
Development of a web-based (e-learning) pilot, hiring specialized
providersProject approved by the board
Differentiated levels of Corporate Governance at privately-held companies;
Guide to privately-held companies, course, research,
creation of a specific committeeProject approved by the board
Identifying opportunities and seeking to influence ongoing
legislation
Legislative lobbying group (LLG), hiring specialized outsourced
companyProject approved by the board
Extensive communications plan
New websites, new newsletter, new media service,
communications and public relations
Implemented
Material elaborado para utilização exclusiva nos cursos do IBGC.
To be a reference in Corporate Governance, contributing to a sustainable corporate performance, and influencing society agents toward greater transparency, justice, and responsibility.
IBGC’s Purpose