Compared to 2017, the average level of implementation of the Code's principles increased by 5 pp. to 76% while the average level of reasoning quality grew 7 pp. to 60%. Since 2015, the Bank of Russia has annually measured the compliance of companies from the 1st and 2nd quotation lists with Corporate Governance Code principles based on their self assessment. 63 companies included in these lists were reviewed in 2018. In 16 companies, the level of principles implemented in 2018 exceeded 90%, whereas in 2017, there were only 7 such companies. At the same time, the number of companies whose reasoning requires significant improvement halved vs 2017.

In 2019, the Bank of Russia expanded the scope of monitoring of implementation of the Code’s principles and recommendations by Russian PJSCs. The Review contains, for the first time, the results of the analysis of annual reports of companies included in the 3rd quotation level of securities accepted for trading at PJSC Moscow Exchange. The exchange listing rules do not set any corporate governance requirements; therefore, as expected, the level of principles implementation by such companies turned out to be around 49%. The Bank of Russia intends to raise the awareness of such companies regarding the implementation of the Code’s recommendations, as it did earlier with PJSCs included in quotation lists.

The Review also contains recommendations and clarifications with regard to the practical implementation of some Code provisions, which pose certain difficulties to companies.

The Bank of Russia hopes that the information and recommendations included in the Review will help improve corporate governance practices and will promote the implementation of respective Code provisions by a wider range of companies.

Financial markets megaregulator, Improvement of corporate governance, Project Group №1