PwC Malta Governance Survey 2023

Finding opportunity in uncertainty

75%

of Chairs of Maltese equity issuers provided the data
76.2%

do not use a Board Composition Matrix
90.5%

have factored ESG into their strategy
38.1%

do not carry out Board assessments

The Maltese equity listing market is particular - it encompasses a diverse range of businesses, varying from entities with widely dispersed ownership to corporates that are owned by one or a few significant shareholders. Consequently, international best practices need to be carefully adapted to the local context.

For the second year running, PwC Malta has again sought to assess the pulse of the Boards of Maltese equity issuers by conducting the 2023 Governance Survey. The position of the Chair was again chosen in view of the role’s distinct positioning as a leader within the boardroom and steward of good governance. Participants were offered the option to submit their answers electronically or by means of an interview.

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Chairs from 75% of Maltese equity issuers provided their perspective on the following key themes:

While strategic acumen remains the most sought-after quality in Board members, cyber risk expertise increased in priority.

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Chairs are generally satisfied with the timeliness and quality of Board packs, although technology and dashboarding are becoming increasingly essential for effective information reporting.

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This survey indicates improved shareholder engagement, with over 85% noting the presence of relevant investors at meetings (up from 76%). Additionally, more than 95% find valuable insights from shareholder engagement, marking an 18% increase. Despite diverse shareholding structures, chairs report increased engagement at general meetings, anticipating more challenging questions.

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ESG matters are now well and truly on the radar with over 90% of responses indicating that ESG issues are factored into strategic direction. but the struggle around obtaining the right data and reporting remains.

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Most Chairs confirmed that risk management is mainly delegated to audit committees. While these committees handle financial risks well, concerns arise about their capability to address broader risks (operational, compliance, cyber, strategic, sustainability etc.)

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While all respondents stated that they were impacted by inflation, a majority of participants did not feel that their business was impacted by declining consumer demand.

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