Analysis of ABM Industries Corporate Governance

The assignment involves a detailed examination of the corporate governance framework and practices at ABM Industries. It focuses on the separation of the Chief Executive Officer (CEO) and Chairman roles, and explores the implications of this structure on corporate governance. The analysis draws from relevant literature and empirical research to provide insights into the effectiveness of this governance model in promoting accountability and ensuring shareholder interests.

Introduction
 Founded in 1909 by Morris Rosenberg
 Facility management service provider based in United States
 Employing over “100,000 employees, over 300 offices, and 20
international locations”
 “Facility services, building maintenance services and outsourcing of
services to other companies”
 Industrial, commercial services for “retail clients and government across
international locations and United States”

Aims of the Study
 Critical review of board and executive management with in matters of
CG
 Critical review of independence of the auditors of the company
 Rational for the position of CEO and chairman are split and its
implication on CG of the company

Critical review of independence
of the auditors of the company
 Annual report in 2016 shows the information of officers are found in
“Part I, Item 1 of this Form 10-K” under “Executive Officers of
Registrant.”
 Additional data set out under descriptions “Proposal No. 1—Election of
Directors,” “Corporate Governance and Board Matters,”
 Executive compensation is incorporated as per information set forth by
“Director Compensation,” “Executive Compensation,” and “Corporate
Governance and Board Matters”.
 The schedule for holding annual meeting of the shareholders was done
on March 8, 2017

Critical review of independence
of the auditors of the company
 Annual report 2015 depicts information about “executive officers” is
found in “Part I, Item 1 of Form 10-K” under “Executive Officers of
Registrant.”
 Additional information was “set forth under captions” “Proposal No. 1—
Election of Directors,” during 2016, however in 2015 it was set forth as
per the captions “Items to be Voted On—Election of Directors,”.
 Executive compensation was incorporated for Fiscal Year 2015,”
“Executive Compensation,” and “Corporate Governance and Board
Matters” in the 2016 “Proxy Statement”
 Schedule for holding yearly consultation of the shareholders was done
on March 9, 2016

Critical review of independence
of the auditors of the company
 “KPMG LLP”, an self-determining registered “public accounting firm”, has audited
the “consolidated financial statements” included the “Annual Report on Form 10-
K”
 ABM industries are subject to conduct tax audits by government authorities
across United States and United Kingdom.
 During unfavourable result tax audit may adversely impact the taxes and net
income.
 Audit of the company has accompanied the preparation of consolidated balance
sheets thereby depicting “shareholders equity and cash flows” for each
individual year.
 Audit of the consolidated financial statement also comprises of the inspection of
“test basis evidence” supporting and the amount of disclosures made in the
financial statements

Critical review of independence
of the auditors of the company
 Annual report published in 2015, shows registrants certifying officer has
disclosed the independence of the auditor as part of the most recent
evaluation of internal control
 Auditor are viewed with “Certification of Chief Financial Officer Pursuant
to Securities Exchange Act Of 1934 Rule 13a-14(A) Or 15d-14(A)”
 Auditors are also pursuant with “Certification of Chief Executive Officer
Pursuant to Securities Exchange Act Of 1934 Rule 13a-14(A) Or 15d-
14(A)”

Rational for the position of CEO and chairman
are split and its implication on CG of the
company
 Information published in the annual report of 2016 shows Maryellen C.
Herringer is identified as Chairman of the Board and Director
 Scott Salmirs identified as the “President and Chief Executive Officer” of
ABM Industries
 Position of CEO and chairman are split up in the given situation
 Significant integration on the corporate governance strategy and
distinction between the nonexecutives
 Main implication of this on CG is further seen to be based on better
monitoring and ensuring conjunction with the will of the shareholders.

Rational for the position of CEO and chairman
are split and its implication on CG of the
company
 Annual report of 2015, has clearly stated that Scott Salmirs is the
president and “chief executive officer” of ABM
 Separation of leadership roles helps in clear division of responsibilities
resulting in greater balance between power and authority
 Ensure no one individual has unconstrained powers in “decision-
making”
 CG affairs of ABM has been able to maintain a strong and independent
“element on the board”
 Separation of the roles may lead to aggression for the CEO which in turn
may lead to unforeseen events

Conclusion
 Additional information was set forth under captions “Proposal No. 1—
Election of Directors,” during 2016, however in 2015 it was set forth as
per the captions “Items to be Voted On—Election of Directors,”.
 Leadership conducive in clear division of responsibilities which results in
greater balance of power and authority
 “KPMG LLP”, an “independent registered” “public accounting firm”, has
audited the “consolidated financial statements” included the “Annual
Report on Form 10-K”

THANK YOU

References
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 Our Company | ABM. (2018). ABM. Retrieved 2 March 2018, from https://www.abm.com/our-company/