Contracts should last for a year or less, according to a review of the corporate governance, engagement and activism strategies of more than 20 UK investment managers, their trade associations and advisers.

The review, commissioned by Hermes, the UK fund manager, and Georgeson Shareholder, the communications and investor relations advisers, shows there is consensus among institutions about contract lengths, that non-executive directors should not normally be considered independent after nine years' service and that companies should annually disclose their performance on social, ethical and environmental matters.