Corporate governance

Scottish Widows Investment Partnership (SWIP) aims to deliver long-term financial benefits to clients by investing their money both safely and successfully. We believe that this will be best achieved through combining detailed analysis of a company's structure, strategy and performance with careful consideration of corporate governance issues. By ensuring that companies are effectively managed, and that the interests of management and shareholders are aligned, corporate governance makes a key contribution to the creation of long-term value for shareholders. Of particular importance to us are:

• the structure and balance of a company’s board
• executive directors’ service contracts
• the composition of board committees
• performance criteria for long-term incentive schemes
• social, environmental and ethical issues

Our UK Corporate Governance Policy is aligned with the recommendations made in the Combined Code on Corporate Governance. This sets out guidelines on good practice for the management and operation of UK listed companies. Our Policy is in line with the consensus view of best practice in UK corporate governance. As members of the relevant industry groups, SWIP has actively contributed over many years to the formulation of best practice in the UK. Just as importantly, however, our approach to corporate governance makes full use of the experience of our investment team.