1 ACI Annual Audit Committee Survey - Global M A R K E T I N G & C O M M U N I C A T I O N S R E S E...
107
1 ACI Annual ACI Annual Audit Committee Survey - Audit Committee Survey - Global Global M A R K E T I N G & C O M M U N I C A T I O N S R E S E A R C H Charles Garbowski Research February 21, 2006
1 ACI Annual Audit Committee Survey - Global M A R K E T I N G & C O M M U N I C A T I O N S R E S E A R C H Charles Garbowski Research February 21, 2006
ACI/NACD Global Results - 2006Audit Committee Survey - Global
M A R K E T I N G & C O M M U N I C A T I O N S
R E S E A R C H
Charles Garbowski
Audit Committee processes
Composition / background of Audit Committees and their
members
Relationships with other company functions / executives
Compare results by global region
*
Methodology
Analysis based on 1,231 electronic and paper surveys conducted
November 1, 2005 – January 31, 2006 in the following global
regions:
Americas (453 respondents)
Europe (413 respondents)
*
Methodology
Respondents are all Audit Committee Members of at least one
company
U.S. and Canada respondents are all Audit Committee Members of at
least one public company
Respondents were asked to respond based on the largest company (by
revenue) for which they serve as an Audit Committee Member
U.S. and Canada respondents were asked to respond based on largest
public company for which they serve as an Audit Committee
Member
*
Globally, respondents rate their Audit Committees at least
“somewhat effective” overall
More than half say “very effective”
Nearly half indicate room for improvement
Of the regions analyzed, Americas rates their Audit Committee
effectiveness the highest
Audit Committee effectiveness is improving
2 in 3 say AC has “become more effective” in the past year
The trend is similar across global regions
AUDIT COMMITTEE MEMBERS ARE GENERALLY AT LEAST “SOMEWHAT
SATISFIED”
WITH THEIR EFFECTIVENESS, PARTICULARLY IN THE AMERICAS
*
AC Evaluation Of Committee / Processes
Almost all are at least “somewhat satisfied” that the Audit
Committee devotes an appropriate amount of time and attention to
its duties
Americas, Australia most satisfied with time and attention devoted
by their Audit Committee
South Africa is least satisfied
Significant majority say Audit Committee is “very effective” at
ensuring independence / accountability of external audit
*
AC Evaluation Of Committee / Processes
Nearly all respondents at least “somewhat satisfied” with approach
used to establish Audit Committee agenda / work plan
However, more than 4 in 10 indicate there is room for
improvement
Americas, Australia most satisfied with their AC agenda and work
plan approach
Asia least satisfied
More than 6 in 10 say pre-Audit Committee meeting materials are
“high quality”
Others say quality is “moderate”
Australia, Europe rate the quality of their pre-AC meeting
materials highly
Majority of Asia rate quality as “moderate”
*
AC Evaluation Of Committee / Processes
Nearly 4 in 10 say their Board has communicated the most
constructive suggestions for improving the Audit Committee
2 in 10 cite their external auditor
“Board of Directors” is the leading response in all global
regions
Among those with an Audit Committee self-evaluation process, almost
all at least “somewhat satisfied” with evaluation approach
3 in 10 “very satisfied”
Satisfaction with self-evaluation process similar across global
regions
*
Personal Financial Liability
3 in 4 say legal / financial exposure at least “somewhat greater”
for Audit Committee than for other board members
1 in 4 say “significantly greater” (included in number above)
4 in 10 from South Africa and Asia say legal / financial exposure
“significantly greater” for Audit Committee
ACROSS GLOBAL REGIONS, AUDIT COMMITTEE MEMBERS HAVE PERSONAL
CONCERNS ABOUT THEIR ROLE AND ITS RISKS
*
1 in 4 say “very concerned”
All regions share this concern
Asia, South Africa most likely to be “very concerned”
Most respondents at least “somewhat satisfied” with Directors &
Officers liability insurance coverage
However, 3 in 4 indicate room for improvement
Satisfaction trend holds across global regions
Asia least likely to be “very satisfied”
*
Key Findings
Time Commitment
3 in 4 spent under 100 hours fulfilling their Audit Committee
Member role in 2005 (for specified Audit Committee)
Nearly 4 in 10 spent less than 50 hours
Nearly 4 in 10 Americas respondents spent more than 100 hours (most
of any global region)
Only 1 in 10 in Asia spent more than 100 hours
Respondents serve on an average of 2.4 Audit Committees (including
public and private Committees)
Similar across global regions – ranges from 2.1 in Europe to 2.7 in
South Africa, Americas
AUDIT COMMITTEE MEMBER TIME COMMITMENT VARIES BY GLOBAL
REGION,
MOST WORK LESS THAN 100 HOURS ANNUALLY PER COMMITTEE
*
Americas met most often: 8.6
Other regions ranged from 5.0 to 5.8
Most meetings were face-to-face (3:1)
Number of face-to-face Audit Committee meetings averaged 4.9 per
year vs. teleconference meetings 1.6 per year
Face-to-face meetings are longer (2:1)
Face-to-face Audit Committee meetings averaged 2.9 hours vs.
teleconference meetings 1.2 hours
*
Key Findings
Composition / Background
Significant majority of respondent companies have 3 or 4 members
serving on their Audit Committee
Average: 3.9
South Africa average 4.9 (the most of any global region)
CFO or related accounting / finance experience, broad business
experience are viewed as “very important” Audit Committee
background attributes
These attributes are most important for all global regions
Almost all say it is “very important” for one or more Audit
Committee Member to have financial reporting / accounting
expertise
Across all global regions
Contacts and public profile least important
Trend holds for all global regions
*
Relationship With Internal Audit / Others
4 in 10 say Audit Committee / Audit Committee Chair has ultimate
authority to hire / fire Chief Audit Executive
Global regions differ on whether it is primarily the Audit
Committee / Audit Committee Chair or the full Board
Respondents confident Chief Audit Executive would directly report
controversial senior management issues to the Audit Committee
Most global regions “very confident” that Chief Audit Executive
would directly report issues to Audit Committee
Asia “somewhat confident”
*
Most respondents “very satisfied” with interaction / support from
CFO
Less satisfied with support from others
CFO has highest satisfaction in all global regions, except:
Asia most satisfied with interaction / support from Full
Board
Australia most satisfied with interaction / support from External
Audit Partner
Least satisfied with support from external legal counsel
In all regions
*
Q63. How would you rate the overall effectiveness of your Audit
Committee? (Select one)
Respondents Rate Their ACs At Least “Somewhat Effective”; Nearly
Half Indicate Room For Improvement
n = 1161
% Saying Effective
*
Q63. How would you rate the overall effectiveness of your Audit
Committee? (Select one)
Americas Rates Their Audit Committee Effectiveness The
Highest
Percentages do not add to 100% due to rounding
*
Q64. In the past year, would you say the Audit Committee has:
(Select one)
Audit Committee Effectiveness Improving – 2 In 3 Say Audit
Committee Has “Become More Effective” In The Past Year
n =1151
*
Q64. In the past year, would you say the Audit Committee has:
(Select one)
This Trend Is Similar Across Global Regions
*
Almost All At Least “Somewhat Satisfied” That AC Devotes An
Appropriate Amount Of Time And Attention To Its Duties
Q18. How satisfied are you that the Audit Committee devotes an
appropriate amount of time and attention to its duties? (Select
one)
n = 1178
*
Americas, Australia Most Satisfied With Time And Attention Devoted
To AC Duties; South Africa Least Satisfied
Q18. How satisfied are you that the Audit Committee devotes an
appropriate amount of time and attention to its duties? (Select
one)
Percentages do not add to 100% due to rounding
*
Q36. How effective is the Audit Committee at helping ensure the
External Auditor’s independence from management and accountability
to the Audit Committee? (Select one)
Significant Majority Say Audit Committee “Very Effective” At
Ensuring Independence / Accountability Of External Auditor
n = 1171
*
Q36. How effective is the Audit Committee at helping ensure the
External Auditor’s independence from management and accountability
to the Audit Committee? (Select one)
Americas Rated Their AC’s Effectiveness Very Highly In Ensuring
External Auditor Independence / Accountability
Percentages do not add to 100% due to rounding
*
Nearly All At Least “Somewhat Satisfied” With Approach Used To
Establish Audit Committee Agenda / Work Plan
Q20. How satisfied are you with the approach used to establish the
Audit Committee’s agenda/work plan? (Select one)
n = 1184
*
Americas, Australia Most Satisfied With Their AC Agenda And Work
Plan Approach; Asia Least Satisfied
Q20. How satisfied are you with the approach used to establish the
Audit Committee’s agenda/work plan? (Select one)
Percentages do not add to 100% due to rounding
*
More Than 6 In 10 Say Pre-Audit Committee Meeting Materials Are
“High Quality”; Others Say Quality Is “Moderate”
Q24. How would you rate the quality of the pre-Audit Committee
meeting materials provided to your Audit Committee? (Select
one)
n = 1184
*
Australia, Europe Rate The Quality Of Their Pre-Audit Committee
Meeting Materials Highly; Majority Of Asia Rate Quality As
“Moderate”
Q24. How would you rate the quality of the pre-Audit Committee
meeting materials provided to your Audit Committee? (Select
one)
Percentages do not add to 100% due to rounding
*
Q60. Who has identified and communicated the most constructive
suggestions to improve the Audit Committee’s organization and
activities as a result of their interaction with the Committee?
(Select one)
Nearly 4 In 10 Say Their Board Has Communicated The Most
Constructive Suggestions For Improving AC
n = 1104
*
Q60. Who has identified and communicated the most constructive
suggestions to improve the Audit Committee’s organization and
activities as a result of their interaction with the Committee?
(Select one)
Entity Identifying / Communicating The Most Constructive Audit
Committee Suggestions – By Global Region
Percentages do not add to 100% due to rounding
*
Q60. Who has identified and communicated the most constructive
suggestions to improve the Audit Committee’s organization and
activities as a result of their interaction with the Committee?
(Select one)
Entity Identifying / Communicating The Most Constructive Audit
Committee Suggestions – By Global Region
Percentages do not add to 100% due to rounding
*
Q56. How satisfied are you that your Audit Committee’s current
self-evaluation approach enhances its effectiveness? (Select
one)
Almost All At Least “Somewhat Satisfied” With Audit Committee’s
Current Self Evaluation Approach
n = 832
% Satisfied
93%
*
Q56. How satisfied are you that your Audit Committee’s current
self-evaluation approach enhances its effectiveness? (Select
one)
Satisfaction With Self-Evaluation Process Similar Across Global
Regions
Among Those With A Self-Evaluation Process
Percentages do not add to 100% due to rounding
*
*
Q45. In your opinion, how do the legal obligations/financial
exposures of Audit Committee Members compare with those of other
Board Members? (Select one)
3 In 4 Say Legal/Financial Exposure “Somewhat Greater” For AC Than
Other Board Members; 1 In 4 Say “Significantly”
n = 1154
77%
Globally
*
Q45. In your opinion, how do the legal obligations/financial
exposures of Audit Committee Members compare with those of other
Board Members? (Select one)
4 In 10 From South Africa And Asia Say Legal / Financial Exposure
“Significantly Greater” For Audit Committee
Percentages do not add to 100% due to rounding
*
U.S. and Canada: Q44. How concerned are you about the potential for
personal financial exposure as a public company Audit Committee
Member? (Select one)
All others: Q44: How concerned are you about the potential for
personal financial exposure as an Audit Committee Member? (Select
one)
Personal Financial Exposure Concerns Audit Committee Members
n = 1179
*
All Regions Share This Concern; Asia, South Africa Most Likely To
Be “Very Concerned”
U.S. and Canada: Q44. How concerned are you about the potential for
personal financial exposure as a public company Audit Committee
Member? (Select one)
All others: Q44: How concerned are you about the potential for
personal financial exposure as an Audit Committee Member? (Select
one)
Percentages do not add to 100% due to rounding
*
Q46. How satisfied are you that your Directors & Officers
liability insurance coverage adequately minimizes your personal
financial exposure? (Select one)
Most Respondents At Least “Somewhat Satisfied” With Directors &
Officers Liability Insurance Coverage
n = 1093
*
Q46. How satisfied are you that your Directors & Officers
liability insurance coverage adequately minimizes your personal
financial exposure? (Select one)
This Is True Across Global Regions
Percentages do not add to 100% due to rounding
*
*
3 In 4 Spent Under 100 Hours Fulfilling Their AC Member Role In
2005 (For Specified Audit Committee)
Q17. How much time do you expect to spend in 2005 fulfilling your
role as an Audit Committee Member (excluding other Board
responsibilities), including all related meetings and preparation
time? (Select one)
n = 1186
*
By Global Region
Q17. How much time do you expect to spend in 2005 fulfilling your
role as an Audit Committee Member (excluding other Board
responsibilities), including all related meetings and preparation
time? (Select one)
Percentages do not add to 100% due to rounding
*
Q17. How much time do you expect to spend in 2005 fulfilling your
role as an Audit Committee Member (excluding other Board
responsibilities), including all related meetings and preparation
time? (Select one)
Time Spent In Audit Committee Member Role In 2005
By Global Region
*
Number Of Audit Committees Served On
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Avg. # of companies : 2.4
*
Avg. # Of Companies
Americas: 2.7
Europe: 2.1
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Includes Public And Private Company Audit Committees
Percentages do not add to 100% due to rounding
*
Avg. # Of Companies
South Africa: 2.7
Asia: 2.5
Australia: 2.3
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Includes Public And Private Company Audit Committees
Percentages do not add to 100% due to rounding
*
Q14_1. How many Audit Committee meetings, including
teleconferences, were held last year? (Open end)
Average # of meetings
*
By Global Region
Q14_1. How many Audit Committee meetings, including
teleconferences, were held last year? (Open end)
Average # Of Meetings*
Americas: 8.6
Europe: 5.1
*Sum of "face-to-face" and "teleconference" averages don't
necessarily match "total" because some respondents did not account
for their “total” meetings in their
"face-to-face"/”"teleconference" breakdown.
Percentages do not add to 100% due to rounding
*
Q14_1. How many Audit Committee meetings, including
teleconferences, were held last year? (Open end)
Average # Of Meetings
South Africa: 5.0
By Global Region
*Sum of "face-to-face" and "teleconference" averages don't
necessarily match "total" because some respondents did not account
for their “total” meetings in their
"face-to-face"/”"teleconference" breakdown.
Percentages do not add to 100% due to rounding
*
Three Times As Many Face-To-Face Meetings As Teleconference
Q14_2. Number of meetings in which Members met face-to-face (Open
end)
Q14_3. Number of meetings in which Members met via teleconference
(Open end)
Average # of meetings
*
By Global Region
Q14_2. Number of meetings in which Members met face-to-face (Open
end)
Average # Of Face-to-Face Meetings
*
Q14_2. Number of meetings in which Members met face-to-face (Open
end)
Average # Of Face-to-Face Meetings
By Global Region
*
Q14_3. Number of meetings in which Members met via teleconference
(Open end)
Average # Of Teleconference Meetings
By Global Region
*
Q14_3. Number of meetings in which Members met via teleconference
(Open end)
Average # Of Teleconference Meetings
By Global Region
*
Face-To-Face Audit Committee Meetings Average More Than Twice As
Long As Teleconference Meetings
Q15. What is the average length of face-to-face Audit Committee
meetings, in hours? (Open end)
Q16. What is the average length of teleconferenced Audit Committee
meetings, in hours? (Open end)
Globally
Average length of meetings
By Global Region
Q15. What is the average length of face-to-face Audit Committee
meetings, in hours? (Open end)
Avg. Length of Meetings (Hours)
Average Length Of Face-to-Face Meetings
Americas: 2.9
Europe: 2.9
*
Q15. What is the average length of face-to-face Audit Committee
meetings, in hours? (Open end)
Avg. Length of Meetings (Hours)
Average Length Of Face-to-Face Meetings
South Africa: 3.1
By Global Region
*
Q16. What is the average length of teleconferenced Audit Committee
meetings, in hours? (Open end)
Avg. Length of Meetings (Hours)
Average Length Of Teleconference Meetings
Americas: 1.3
Europe: 1.1
By Global Region
*
Q16. What is the average length of teleconferenced Audit Committee
meetings, in hours? (Open end)
Avg. Length of Meetings (Hours)
Average Length Of Teleconference Meetings
South Africa: 1.3
By Global Region
*
*
Significant Majority Of Respondent Companies Have 3 Or 4 Members
Serving On Their Audit Committee
Q6. How many members, including the chair, serve on your audit
committee? (Open end)
n = 1173
By Global Region
Q6. How many members, including the chair, serve on your audit
committee? (Open end)
Avg. # Of Members
*
Q6. How many members, including the chair, serve on your audit
committee? (Open end)
Audit Committee Size (Number Of Members)
By Global Region
Avg. # Of Members
South Africa: 4.9
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
1176
1165
1148
1151
1129
1127
1144
1132
CFO Or Related Experience, Broad Business Experience Are Viewed As
“Very Important” AC Background Attributes
Globally
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
Relative Importance Of Audit Committee Backgrounds /
Experiences
434
434
424
421
414
413
417
412
Americas
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
397
388
384
389
381
383
383
383
Europe
Percentages do not add to 100% due to rounding
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
78
78
78
78
75
77
73
78
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
130
130
131
127
126
128
132
125
Asia
Percentages do not add to 100% due to rounding
*
n
Q8. How important are the following types of backgrounds and
experiences for an Audit Committee Member to have in general?
131
129
129
127
127
128
128
125
Australia
Percentages do not add to 100% due to rounding
*
Q10. How important is it for the Audit Committee to have one or
more Members with a strong understanding of financial reporting and
accounting? (Select one)
n = 1187
“Very Important” For Audit Committees To Have Financial Reporting /
Accounting Expertise
% Saying Important
All Global Regions Agree
Q10. How important is it for the Audit Committee to have one or
more Members with a strong understanding of financial reporting and
accounting? (Select one)
Percentages do not add to 100% due to rounding
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
Integrity Tops List Of Audit Committee Personal Characteristics;
Contacts/Public Profile Are Least Important
1188
1179
1176
1158
1167
1167
1165
Globally
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
Audit Committee Personal Characteristics Ratings
434
437
433
434
431
431
431
Americas
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
403
396
397
387
395
391
392
Europe
Percentages do not add to 100% due to rounding
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
78
78
78
77
78
77
77
Percentages do not add to 100% due to rounding
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
134
131
132
130
125
131
128
Asia
Percentages do not add to 100% due to rounding
*
n
Q9. How important are the following personal characteristics for an
Audit Committee Member to have?
133
131
129
130
127
131
131
Australia
*
*
Q41. Who has the ultimate authority to hire/fire the Chief Audit
Executive? (Select one)
n = 989
4 In 10 Say Audit Committee / AC Chair Has Ultimate Authority To
Hire / Fire Chief Audit Executive
Globally
Percentages do not add to 100% due to rounding
*
Q41. Who has the ultimate authority to hire/fire the Chief Audit
Executive? (Select one)
Authority To Hire / Fire Chief Audit Executive
By Global Region
Percentages do not add to 100% due to rounding
*
Q41. Who has the ultimate authority to hire/fire the Chief Audit
Executive? (Select one)
Among Those With Internal Audit Function
Authority To Hire / Fire Chief Audit Executive
By Global Region
*
Q42. How confident are you that your company’s Chief Audit
Executive would directly report any controversial issues involving
senior management to the Audit Committee? (Select one)
Respondents Confident Chief Audit Exec Would Directly Report
Controversial Senior Management Issues To AC
n = 980
% Confident
97%
*
Q42. How confident are you that your company’s Chief Audit
Executive would directly report any controversial issues involving
senior management to the Audit Committee? (Select one)
Most Regions “Very Confident” That Chief Audit Exec Would Directly
Report Issues To AC; Asia “Somewhat Confident”
Among Those With Internal Audit Function
Percentages do not add to 100% due to rounding
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
Most Respondents “Very Satisfied” With Support From CFO; Less
Satisfied With Support From Others
n
1147
945
1124
1149
1123
812
748
635
Globally
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
Satisfaction With Interaction / Support Received By Audit Committee
From Various Entities
n
421
299
418
406
403
285
238
265
Americas
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
n
392
343
385
391
386
263
237
184
Europe
Satisfaction With Interaction / Support Received By Audit Committee
From Various Entities
Percentages do not add to 100% due to rounding
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
n
72
68
64
72
70
65
49
39
Satisfaction With Interaction / Support Received By Audit Committee
From Various Entities
Percentages do not add to 100% due to rounding
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
n
129
127
124
130
129
119
89
81
Asia
*
Q61. How satisfied are you with the interaction and the support the
Audit Committee receives from each of the following?
n
131
133
130
109
133
124
86
63
Australia
Satisfaction With Interaction / Support Received By Audit Committee
From Various Entities
Percentages do not add to 100% due to rounding
*
Respondent Company Revenue
U.S. and Canada: Q5. What is the annual revenue of the largest
public company for which you serve as an Audit Committee Member?
(Select one)
All others: Q5. What is the annual revenue of the largest company
for which you serve as an Audit Committee Member? (Select
one)
n = 1222
*
Respondent Company Revenue
By Global Region
U.S. and Canada: Q5. What is the annual revenue of the largest
public company for which you serve as an Audit Committee Member?
(Select one)
*
Respondent Company Revenue
By Global Region
U.S. and Canada: Q5. What is the annual revenue of the largest
public company for which you serve as an Audit Committee Member?
(Select one)
All others: Q5. What is the annual revenue of the largest company
for which you serve as an Audit Committee Member? (Select
one)
Percentages do not add to 100% due to rounding
*
Respondent Background
n = 1222
*
Respondent Background
*
Respondent Background
*
Number Of Audit Committees Served On
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Avg. # of companies : 2.4
*
Avg. # Of Companies
Americas: 2.7
Europe: 2.1
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Includes Public And Private Company Audit Committees
Percentages do not add to 100% due to rounding
*
Avg. # Of Companies
South Africa: 2.7
Asia: 2.5
Australia: 2.3
U.S. and Canada: Q2. How many public company audit committees do
you serve on? (Open end); Q4. How many private company or
not-for-profit audit committees do you serve on? (Open end)
All others: Q2. How many audit committees do you serve on? (Open
end)
Includes Public And Private Company Audit Committees
Percentages do not add to 100% due to rounding
*
Low qualityModerate qualityHigh quality
Americas (n = 432)Europe (n = 403)South Africa (n = 76)Asia (n =
134)Australia (n = 133)
28%
33%
31%
34%
3%
1%
9%
10%
51%
54%
58%
29%
33%
46%
54%
45%
16%
15%
8%
70%
37%
27%
63%
45%
Legal
accounting/finance
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
South Africa (n = 84)Asia (n = 136)Australia (n = 133)
18%
13%
25%
17%
12%
14%
0%
10%
20%
30%
40%
50%
Needs improvementSomewhat satisfiedVery satisfied
Americas (n = 432)Europe (n = 404)South Africa (n = 77)Asia (n =
132)Australia (n = 133)
17%
23%
59%
17%
20%
39%
41%
7%
Not concernedSomewhat concernedVery concerned
Americas (n = 427)Europe (n = 405)South Africa (n = 75)Asia (n =
134)Australia (n = 133)
14%
12%
2%
4%
37%
45%
35%
Legal
accounting/finance
Not confidentSomewhat confidentVery confident
Americas (n = 308)Europe (n = 360)South Africa (n = 71)Asia (n =
126)Australia (n = 111)
41%
35%
15%
4%
1%
4%
66%
23%
6%
1%
2%
1%
45%
40%
12%
hours
7%
7%
43%
51%
8%
59%
33%
12%
46%
42%
6%
32%
62%
66%
27%
0%
20%
40%
60%
80%
100%
Needs to spend more timeSomewhat satisfiedVery satisfied
Americas (n = 431)Europe (n = 402)South Africa (n = 75)Asia (n =
133)Australia (n = 132)
8%
5%
63%
32%
18%
56%
26%
18%
70%
11%
8%
63%
30%
25%
68%
0%
20%
40%
60%
80%
100%
Not satisfiedSomewhat satisfiedVery satisfied
Americas (n = 400)Europe (n = 378)South Africa (n = 68)Asia (n =
114)Australia (n = 128)
19%
7%
5%
6%
43%
43%
9%
3%
1%
0%
21%
43%
0%
20%
40%
60%
80%
100%
hours
1%
2%
28%
69%
0%
33%
67%
3%
44%
53%
4%
24%
72%
82%
17%
0%
20%
40%
60%
80%
100%
Needs improvementSomewhat effectiveVery effective
Americas (n = 425)Europe (n = 404)South Africa (n = 75)Asia (n =
134)Australia (n = 128)
20%
2%
1%
0%
70%
29%
1%
0%
14%
62%
0%
20%
40%
60%
80%
100%
0 1 - 5 6 - 10 11 - 15 16 - 20More than 20
Americas (n = 408)Europe (n = 375)
2%
3%
11%
7%
2%
2%
51%
61%
68%
30%
33%
37%
40%
48%
46%
28%
25%
70%
60%
50%
65%
61%
External Legal Counsel
In-House General Counsel
0%
20%
40%
60%
80%
100%
0 1 - 5 6 - 10 11 - 15 16 - 20More than 20
South Africa (n = 76)Asia (n = 135)Australia (n = 132)
8%
4%
6%
21%
2%
2%
4%
33%
48%
52%
22%
23%
26%
28%
28%
63%
47%
27%
78%
68%
65%
76%
72%
External Legal Counsel
In-House General Counsel
0%
20%
40%
60%
80%
100%
Up to 1>1 - 2>2 - 4>4 - 6>6 - 8More than 8
Face-to-face meetings (n = 1185)Teleconferenced meetings (n =
523)
35%
36%
18%
21%
1 - 5 6 - 10 11 - 15 16 - 20More than 20
Americas (n = 434)Europe (n = 404)
5%
8%
2%
0%
4%
27%
62%
5%
1%
0%
54%
31%
0%
20%
40%
60%
80%
100%
Up to 1>1 - 2>2 - 4>4 - 6>6 - 8More than 8
Americas (n = 432)Europe (n = 405)
37%
9%
7%
6%
5%
1%
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
South Africa (n = 79)Asia (n = 134)Australia (n = 130)
0%
0%
12%
87%
0%
3%
97%
1%
10%
88%
1%
8%
91%
96%
4%
0%
20%
40%
60%
80%
100%
Not importantSomewhat importantVery important
Americas (n = 435)Europe (n = 405)South Africa (n = 74)Asia (n =
134)Australia (n = 133)
31%
13%
15%
14%
15%
0%
11%
4%
10%
1%
14%
12%
24%
10%
26%
5%
3%
1%
5%
5%
5%
12%
26%
37%
1%
2%
6%
6%
8%
13%
28%
36%
Other
Academic
3%
5%
7%
11%
4%
2%
2%
4%
40%
51%
59%
23%
30%
33%
34%
36%
55%
41%
30%
75%
62%
61%
66%
65%
External Legal Counsel
In-House General Counsel
Public profile and image
Legal
accounting/finance
5%
6%
34%
52%
2%
1%
42%
51%
41%
4%
27%
39%
42%
53%
15%
7%
60%
53%
96%
71%
Business contacts
Legal
accounting/finance
Become less effectiveStayed about the sameBecome more
effective
Americas (n = 417)Europe (n = 394)South Africa (n = 71)Asia (n =
133)Australia (n = 131)
5%
3%
4%
4%
7%
13%
17%
26%
23%
3%
3%
1%
2%
9%
4%
16%
23%
38%
Other
Academic
10%
9%
10%
21%
1%
4%
6%
3%
46%
55%
49%
26%
31%
28%
32%
37%
45%
35%
31%
69%
65%
53%
68%
66%
External Legal Counsel
In-House General Counsel
Legal
accounting/finance
3%
30%
0%
20%
40%
60%
80%
100%
Up to 1>1 - 2>2 - 4>4 - 6>6 - 8More than 8
Americas (n = 331)Europe (n = 109)
4%
25%
61%
11%
8%
42%
44%
5%
1%
0%
3%
41%
50%
5%
0%
1%
0%
20%
40%
60%
80%
100%
Up to 1>1 - 2>2 - 4>4 - 6>6 - 8More than 8
South Africa (n = 76)Asia (n = 134)Australia (n = 132)
58%
25%
17%
0%
20%
40%
60%
80%
100%
Up to 1>1 - 2>2 - 4>4 - 6>6 - 8More than 8
South Africa (n = 12)Asia (n = 15)Australia (n = 51)
0%
1%
0%
5%
71%
21%
2%
1%
22%
76%
0%
20%
40%
60%
80%
100%
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
Americas (n = 417)Europe (n = 407)
7%
29%
64%
0%
20%
40%
60%
80%
100%
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
2%
2%
58%
57%
1%
0%
43%
36%
40%
2%
17%
22%
24%
55%
6%
3%
78%
75%
98%
82%
Business contacts
Business contacts
3%
4%
3%
8%
2%
1%
4%
3%
32%
35%
38%
17%
20%
28%
29%
31%
65%
62%
54%
82%
68%
66%
78%
69%
External Legal Counsel
External Legal Counsel
In-House General Counsel
5%
6%
50%
44%
10%
47%
43%
5%
50%
45%
5%
39%
57%
69%
27%
0%
20%
40%
60%
80%
100%
Needs improvementSomewhat effectiveVery effective
Americas (n = 420)Europe (n = 400)South Africa (n = 72)Asia (n =
132)Australia (n = 132)
3%
69%
28%
0%
20%
40%
60%
80%
100%
CEO or President
accounting/finance
4%
3%
3%
4%
8%
8%
16%
24%
31%
Other
Academic
32%
7%
6%
14%
3%
2%
72%
26%
0%
20%
40%
60%
80%
100%
Not satisfiedSomewhat satisfiedVery satisfied
Americas (n = 302)Europe (n = 313)South Africa (n = 52)Asia (n =
112)Australia (n = 64)
8%
55%
36%
0%
20%
40%
60%
80%
100%
Committee Members
Committee Members
Americas (n = 420)Europe (n = 399)South Africa (n = 70)Asia (n =
133)Australia (n = 127)
2%
63%
36%
0%
20%
40%
60%
80%
100%
Business contacts
Business contacts
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
Americas (n = 453)Europe (n = 413)
23%
25%
52%
0%
20%
40%
60%
80%
100%
Committee Members
0%
3%
0%
1%
0%
84%
14%
1%
0%
0%
28%
68%
0%
20%
40%
60%
80%
100%
0 1 - 5 6 - 10 11 - 15 16 - 20More than 20
Americas (n = 428)Europe (n = 406)
9%
26%
65%
0%
20%
40%
60%
80%
100%
1 - 2 3 - 4 5 - 6 7 - 8More Than 8
37%
4%
hours
78%
16%
3%
4%
0%
75%
23%
2%
0%
1%
52%
43%
5%
1 - 5 6 - 10 11 - 15 16 - 20More than 20
South Africa (n = 76)Asia (n = 132)Australia (n = 132)
51%
39%
7%
1%
1%
0%
20%
40%
60%
80%
100%
1 - 5 6 - 10 11 - 15 16 - 20More than 20
0%
76%
21%
2%
0%
1%
54%
39%
6%
1%
0%
20%
40%
60%
80%
100%
0 1 - 5 6 - 10 11 - 15 16 - 20More than 20
Face-to-Face (n = 1183) Teleconference (n = 1123)
83%
15%
1%
0%
20%
40%
60%
80%
100%
0 1 - 5 6 - 10 11 - 15 16 - 20More than 20
South Africa (n = 71)Asia (n = 131)Australia (n = 132)