TheCorporateCounsel.net

The Committee of Sponsoring Organizations of the Treadway Commission (COSO), in collaboration with the National Association of Corporate Directors (NACD), has selected PwC US to assist with developing a Corporate Governance Framework. COSO’s recent announcement indicates that PwC was selected for the project pursuant to a competitive RFP process.

Originally announced back in February, COSO and NACD are collaborating to create “a principles-based governance framework that considers the interests of major stakeholders while maintaining an objective view of leading and desired practice.” This Corporate Governance Framework would be used by:

– public companies seeking to self-assess and enhance governance practices, and by start-up businesses desiring to build up their governance practices and processes;

– private organizations seeking best practices or as part of readiness activities related to initial public offering efforts; and

– external auditors, internal auditors, rating agencies, investors, listing agencies and/or regulators finding such a framework useful in assessing governance practices at related entities.

The announcement of the selection of PwC further explains:

“Good governance is a competitive advantage to every organization. Yet, boards and management may often struggle to effectively integrate good governance in how their organizations operate. For example, the design of incentives or the pursuit of major innovation might possibly create damaging blind spots,” said Peter Gleason, NACD President and CEO. “The CGF will help companies ensure that governance is cohesive in guiding behaviors from the boardroom to the frontlines. We look forward to working with COSO and the PwC team to help build trust in business and society on this important initiative.”

The project is expected to be completed in the fall of 2025.

– Dave Lynn