We are advocates for transparent markets, accountable corporations and responsible investments

PIRC is the UK's leading independent research and advisory consultancy providing services to institutional investors on corporate governance and corporate social responsibility.

Since 1986, it has been the pioneer and champion of good corporate governance within the UK. PIRC has a wide spectrum of clients ranging from pension funds, faith-based investors, trade unions to banks and asset managers. Its Corporate Governance Service is an authoritative and vital resource for active investors, whilst its widely-read Shareowner Voting Guidelines provide a market-wide benchmark for investors and forms part of the movement for corporate governance reform and long-term wealth creation strategies for responsible investors. For more information about PIRC or to arrange a meeting, contact Janice Hayward, or call us on 0207 247 2323.

City & Business

Wed, 2010-08-25

How do you spot a lying chief executive? I am indebted to shareholder advisory body Pirc for highlighting research from Stanford University suggesting some clues for investors to look out for. The academics analysed conference calls made by chief executives and finance directors who later issued profits warnings.

They found “deceptive” bosses were likely to use more references to “general knowledge, fewer non-extreme positive emotions, and fewer references to shareholders value and value creation.” The liars use “significantly fewer self-references” and more “third person plural and impersonal pronouns”. In short, don’t trust those who waffle, sound too upbeat and are reluctant to use the “I” word. Hope this helps.