Depiction of Governance


Delivering purpose through robust management processes

The notion that firms exist primarily to deliver dividends for their shareholders has been openly challenged in recent years. There is a growing consensus among business leaders, academics, and policymakers about the benefits of businesses defining and measuring their corporate purpose beyond merely growing their bottom line.

The drivers of this change in mindset are diverse—from concerns about protecting the environment and corporate equality and fairness to the revolution in working patterns spurred by the COVID-19 pandemic.

Oxera’s governance experts can help your firm find its way. We have a wealth of experience advising regulators, corporates, and investors on alternative mechanisms, including governance rules, board composition, financing structures, and executive remuneration.

The purpose of our work

The onus is now on corporations to fully understand the effects of their operations. This means going beyond financial performance to assess the other four forms of capital—natural, social, human, and manufactured.

With many decades’ experience underpinning this market-leading governance advice, we can help you understand how to identify and overcome market failures. We do this by:

  • aligning the interests of investors and management
  • reducing the cost of capital
  • defining and embedding purpose into your organisation
  • operationalising purpose within the five capitals framework
  • completing ex ante investment appraisals before budget is allocated to the five capitals
  • reporting on ex post financials
  • reviewing KPIs-based executive remuneration

Aligning purpose and regulation

We advise authorities and businesses on appropriate mechanisms to align the regulatory system and corporate purpose.

For example, in the utilities sector, we link outcomes-based approaches and financial incentives to the five capitals.

In financial services, we devise strategies that connect the conduct risk framework to the interests of consumers, and society as a whole.

Meanwhile, the increasing pace of digitalisation is giving rise to new business models that monetise data in various ways. This brings new challenges for both firms and regulators in defining what good outcomes look like, and how to improve them. We’re ready to help you address these pressing questions.

Governance Insights

4 minute read
In his final Agenda article as a Director of Oxera, Mike Toms looks back on a 35+ year career in economic regulation, highlighting some of the key changes and drawing…
11 minute read
Waves of strike action across the public sector have reignited interest in how governments set public-sector pay. In the UK, pay review bodies (PRBs) play a critical role in the…

An analysis of the EU governance framework for corporate reporting

The European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) has recognised the importance of companies reporting accurate information for the efficient operation of financial markets in its recent consultation on the quality of corporate reporting. In particular, in its Call for Evidence on the… Read More

Image depicting An analysis of the EU governance framework for corporate reporting

Using Economics in Competition Cases

How can economics tools support me in competition cases? For more than 20 years, our training course has helped practitioners, in-house lawyers faced with an inquiry, or senior managers wishing to understand potential competition law risk to gain the confidence to judge and rely on economic arguments and evidence put… Read More

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Berlin Discussion Forum

Transition from Gas Markets to Hydrogen Markets Over the summer, the transition to hydrogen has gained further momentum. The direction of travel has become clearer with the approval of the European Commission’s €2bn government funding for thyssenkrupp Steel’s “tkH2Steel” decarbonization project, the EU Delegated Acts on Renewable Hydrogen approval in… Read More

Image depicting Berlin Discussion Forum