Hanfa Awards Top Performers in Corporate Governance
The quality of corporate governance with a focus on the revised G20/OECD principles, which bring new guidelines for long-term resilience and sustainability of business, was the topic of today's conference "Corporate Governance: Standards That Shape Tomorrow". During the event, awards were presented to the top-performing companies—issuers of securities listed on the regulated capital market—for the best compliance with the Corporate Governance Code according to the indicators for 2023. The winners are: Atlantic grupa d.d. on the Prime Market, Končar - Elektroindustrija d.d. on the Official Market and Modra špilja d.d. on the Regular Market. Additionally, Hrvatski Telekom d.d. was recognised for achieving the greatest progress in corporate governance in 2023.
Davor Zoričić, State Secretary in the Ministry of Finance of the Republic of Croatia, addressed the conference attendees during the opening remarks.
Ante Žigman, President of Hanfa Board and host of the event, also greeted the attendees and emphasised the significance of robust governance: "Today, good corporate governance is not just a regulatory requirement—it is a driver of competitiveness and resilience. Across Europe, companies that adopt advanced governance practices are showing exceptional results: attracting more investors, strengthening stakeholder confidence, and building long-term value. Croatian companies are making significant efforts to align their practices with European standards, and the results are promising: the companies that follow best practices record stronger financial results and greater investor confidence. Firms adopting transparent governance practices, for instance, report a 20% higher investor retention rate. Corporate governance is not merely rule-following; it is a strategic advantage. However, it requires management's dedication and perseverance in implementation. European, and therefore Croatian, companies excelling in corporate governance will be the ones that succeed in meeting investor expectations, building trust, and creating lasting value."
The conference featured Verena Ross, Chair of the European Securities and Markets Authority (ESMA), as the main guest speaker. She spoke about the importance and impact of the capital market on the prosperity of the European Union.
"Various developments have rightly re-ignited the push towards a more united and stronger capital market in Europe. The ongoing work that ESMA and national authorities, like Hanfa, do to promote sound corporate governance in listed companies is key to strengthening our markets. Good corporate governance not only enables sound-decision making within companies, but it also promotes external accountability towards investors and other stakeholders and builds a culture of confidence in the capital markets. To succeed in taking our commitment for creating a strong, effective and attractive EU capital market to the next level, we will need to proceed with determination, pragmatism and cohesion. Inspired by the type of unwavering commitment and hard work that made Croatia an integral part of the EU family, I am confident that we can learn from you – and together develop our European capital markets into a successful Savings and Investment Union,” said V. Ross.
Jurica Jednačak, member of Hanfa Board, presented the results of the 2023 Annual Report on Corporate Governance. Following his presentation, awards were given to the top-performing companies.
The analysis of data for 2023 revealed an improvement in share issuers’ compliance with the Corporate Governance Code compared to 2022, with an increase of two percentage points. In 2023, 70% of responses to the compliance questionnaire were affirmative, compared to 68% in the previous year. Issuers demonstrated the highest compliance in the areas of Leadership (80%) and Shareholders and General Meeting (75%), while the lowest compliance was observed in the Appointment of Board Members (51%) and Stakeholders and Corporate Social Responsibility (61%). Notable improvement was achieved in the section on Remuneration of Board Members.
The panel discussion on the role of high standards of corporate governance in successful business brought together key actors from leading domestic companies, providing valuable insights into the challenges and opportunities in modern business. Participants shared insights on the benefits of being listed on the stock exchange over time, expectations from the capital market in the future, and perspectives on the EU initiative for greater market consolidation. They debated the advantages and disadvantages of smaller, local markets and whether they are sufficient to meet the needs of domestic companies, or whether getting out of these frameworks is necessary in today’s globalised world. They talked about the quality of corporate governance from their own experience and debated whether its establishment is a necessary prerequisite for going public or whether listing is a springboard for the development and improvement of corporate governance. Which of its elements are most important and can good corporate governance contribute to better financing conditions for a company, were just some of the points that the panellists touched upon on that occasion.
Corporate governance reporting in Croatia dates back to 2007, when Hanfa and the Zagreb Stock Exchange adopted the first Corporate Governance Code for companies whose shares were listed on the regulated capital market in Croatia. Over time, the Code evolved, culminating in the adoption of the current version in 2019, which brought the best practices from Europe to the Croatian capital market. 2020 was the first year of reporting under this new Code, whose adoption contributes to greater transparency and improved dialogue between issuers and the market in the long term.
The full 2023 Annual Report on Corporate Governance Report is available here.
PHOTO: Cropix, Goran Mehkek
