Within Royal Ten Cate (TenCate) corporate governance is based on the following principles:
- Value creation for shareholders
This means making optimum use of the available resources. In the context of internal financial control, financial ratios and metrics are monitored closely. These reflect the performance in terms of cash flow generating assets, efficiency, margins and the return on capital employed. consideration is also given to longer-term continuity. TenCate takes account of efficient use of natural resources and its social responsibilities.
- Quality of the management and appropriate remuneration
The remuneration policy is intended to attract high-quality management consistent with the specialist and multinational character of TenCate. The performance pay structure must be transparent and focused on key performance indicators. The Supervisory Board’s Remuneration Committee is responsible for developing the remuneration policy and assessing the performance criteria for members of the Executive Board.
- Code of conduct for management and employees
The company has a code of integrity, a whistleblowers scheme and rules to prevent abuse of inside information. This is a dynamic process in which the code of conduct can be refined from time to time.
TenCate conducts an open communication policy and provides regular information on its important commercial developments. Information provision must fulfill the criteria of accuracy, completeness and timeliness and comply with transparency guidelines and IFRS standards, in order to give stakeholders the most transparent and accurate view possible of the performance and outlook. The main risks must be stated and evaluated. The information on the corporate strategy TenCate is communicated clearly. Since 2009, only a market-compliant trading update will be provided for the first and third quarters, in accordance with the legislation which came into force in December 2008.
- Financial control and risk monitoring
The Supervisory Board forms a financial committee from among its members to supervise the financial performance, acquisitions, divestments and general risk policy.
- Avoidance of conflicts of interest
TenCate is alert to conflicts of interest. These are addressed and where necessary avoided.
- Social responsibility and sustainable enterprise
TenCate strives to maintain good relations with other parties in its vicinity and with stakeholders. The company endeavours to limit the environmental impact as far as possible. This principle is also included in the code of conduct for employees. Substantial environmental investments are made for this purpose. Operating companies have long implemented major elements of socially responsible enterprise.