The Men and Women Who Run Capita PLC (CPI)

Governance
Capita has just four non-executives including the chairman, outnumbered by executives in contravention of the Corporate Governance Code. Its justification appears to be the “complexity” of the business.

Together with formerly having an executive chairman and a non-exec who had been a long-serving executive, Capita clearly sees itself as distinct from the majority of FTSE 100 boards. The paucity of cross-directorships with other FTSE companies no doubt reinforces that attitude.

I analyze management teams from five different angles to help work out a verdict. Here’s my assessment:

Overall, Capita scores 13 out of 25, a poor result. The company’s performance has been good, but a tight-knit management team doesn’t permit much independent scrutiny.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

Buffett’s favorite FTSE share
Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, H.J. Heinz Company(NYSE:HNZ), has long had a reputation for strong management. Indeed Buffett praised its “excellent management” alongside its high-quality products and continuous innovation.

The article The Men and Women Who Run Capita originally appeared on Fool.com.

Tony Reading does not own any shares mentioned in this article. The Motley Fool recommends H.J. Heinz.

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