Hanfa Awards Issuers Upholding the Highest Standards of Corporate Governance
The Croatian Financial Services Supervisory Agency (Hanfa), in cooperation with Jutarnji list, today hosted the 8th annual conference “IPO as an Opportunity for Long-Term Owners and Growth Through the Capital Market”. Participants agreed on the key message of the conference: going public is no longer just about raising capital, but also about proving a company’s readiness for transparent, responsible, and sustainable business practices.
The conference was opened by Marko Pavić, Representative of the Speaker of the Croatian Parliament, who highlighted two essential factors for the development of the capital market: political stability and trust – both internationally and among citizens.
Deputy Prime Minister and Minister of Finance Marko Primorac stressed: “A developed capital market is vital for Croatia’s continued economic growth, as it enables the effective mobilization of domestic savings, diversification of funding sources, and encouragement of investment and innovation.” He added: “The government’s ambition is to position Croatia as a recognized regional financial hub, with an open and liquid market and clear regulatory frameworks that encourage startups and private enterprises to grow through IPOs and corporate bonds.” He concluded by pointing out that initiatives such as government retail bonds, digital platforms e-Riznica and m-Riznica, as well as the planned IPO fund, have played an important role in revitalizing the market and engaging new investors.
The President of Hanfa Board Ante Žigman underlined that the capital market is an efficient and flexible source of financing that fosters company growth, innovation, and job creation. He noted: “Going public comes with greater demands for transparency and accountability. Strong corporate governance ensures well-defined processes, risk management, and ESG goal-setting – ultimately building a sustainable and successful business system. No modern company, especially listed ones, can grow successfully without high governance standards.”
In his presentation, Ante Žigman described positive trends in the capital market in the past period. He additionally mentioned significant activities and projects implemented by Hanfa with the aim of further improvement and development of the capital market and encouraging new positive shifts. This is often done in cooperation with various stakeholders – from the Ministry of Finance and other public institutions to the capital market participants themselves.
Recognizing Best Issuers
As part of its long-standing tradition, the conference featured awards for the best issuers of securities listed on the regulated capital market for the best compliance with the Corporate Governance Code in 2024. The awards are intended to encourage companies that lead by example in transparency and accountability. This year’s winners are:
- Podravka grupa d.d. (Prime Market)
- Končar - Elektroindustrija d.d. (Official Market)
- Ericsson Nikola Tesla d.d. (Regular Market)
- Hrvatski Telekom d.d. (Greatest Progress in Corporate Governance in 2024).
Market Experiences – Insights from Issuers and Investors
In the panel discussion “IPO as a Strategic Milestone: A Step Forward for Visionary Companies”, speakers Marko Pipunić (Žito), Josip Glavaš (Erste Asset Management), economist Mladen Vedriš, and Anamarija Staničić (Hanfa) shared their experiences and perspectives on the importance of capital market for the growth and development of companies.
They emphasized that the capital market offers a reliable, efficient, and flexible source of financing that drives innovation, risk management, and job creation, contributing to overall economic prosperity. While some reluctance toward IPOs persists in Croatia, largely due to concerns about losing control or facing stricter transparency requirements, the panellists agreed that the long-term benefits of going public far outweigh these challenges.
Key advantages highlighted include easier access to capital for growth and acquisitions, greater market visibility, professionalization of management structures, and stronger confidence of investors and business partners. Practical examples show that going public can also be a valuable tool in the succession process of family businesses, as it ensures business continuity and a stable framework for the transfer of ownership. Panellists concluded that further modernization of the market, investment stimulation, and stronger competitiveness of the Croatian financial sector are key for successful IPOs and long-term growth of companies through the capital market.
Raising the Bar in Corporate Governance
The conference also presented the results of the 2024 Annual Report on Corporate Governance, which shows that issuers are taking corporate governance more and more seriously, with overall compliance with the Code in 2024 reaching 72%.
The highest compliance was recorded in the areas of Leadership (84%) and Risk, Internal Control and Audit (81%), while room for improvement remains in Appointments of Board Members (61%) and Stakeholders & Corporate Social Responsibility (58%).
Gender diversity is also slowly improving. While more than half of issuers still have no women on their management boards, the number of companies with all-male boards is falling, and nearly half of those that set gender targets have already achieved them.
“Progress is visible, but there is still work to be done, especially in terms of gender diversity and the role of supervisory boards. Good governance benefits not only shareholders, but also employees, partners, and the wider community,” emphasized Hanfa Board Member Jurica Jednačak.
The past year was also significant as the first year of sustainability reporting under new European standards (Corporate Sustainability Reporting Directive – CSRD, and European Sustainability Reporting Standards – ESRS). An analysis of 40 reports confirmed that all issuers produced reports, thus laying the foundation for transparent and comparable reporting. However, challenges remain, particularly regarding climate risk methodologies, supply chains, and transition planning.
It should also be emphasized that in December 2024 a new Corporate Governance Code was adopted, introducing major updates and broader requirements. The new Code came into effect in early 2025 and now applies to all companies listed on the regulated market. The first reports reflecting its implementation will be seen in next year’s corporate governance reports.
The full 2024 Annual Report on Corporate Governance is available here.
Photos: CROPIX, Goran Mehkek
