Corporate Eye

All posts in Corporate governance

tone from the top

An article in the FT unveiled what many of us had feared: the chairmen of some of Britain’s leading corporations are failing to properly articulate the principles and values that drive and motivate them. The news came from a report by advisory firm Grant Thornton released late last year, following a study into the annual reports of FTSE 350 companies.

But not only are corporate captains failing to properly set out a clear tone from … Read the rest

EU slow corporate governance reform

Like a slow, inevitable, irresistible piece of origami, the EU’s plans on corporate governance reform in line with general CSR principles continue to unfold.  This latest instalment looks at corporate governance and follows on from a public consultation and green paper in 2011.

Sixteen areas have been identified and put into an action plan.  Some will require regulatory changes, all will be enacted during 2013 unless further investigation is required and all, with the exception … Read the rest

My last post reviewed the major stakeholder groups who have an interest in good corporate governance. The focus of this post is that corporate governance starts with the Board of Directors.

Simply put, the Board reports to the company’s owners (stockholders) and its essential responsibilities include the duty to: Read more

  • Provide the “tone at the top” on values and the corporate culture
  • Establish corporate strategy
  • Hire and compensate the senior staff, the C-Suite
  • Satisfy stockholder financial
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Corporate Governance is in the news–again. Despite recent laws such as Dodd-Frank in the US, Corporate Governance continues to be a problem. Recent events such as the bankruptcy of MF Global, the $5.8 billion trading loss at JP Morgan and the trial of Rajat Gupta all indicate that good Corporate Governance is still wanting. An article  in The European Financial Review states–

The systemic failure of corporate governance is particularly associated with the Anglo-American corporate

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I suspect that many people have no idea what a big impact non-executive directors (NEDs) can have on an organisation.

If anything, the man on the Clapham omnibus probably thinks of non-execs – if he’s heard of them at all – as white men with grey hair who get together every so often for a quick meeting and a decent lunch, in exchange for a sizeable chunk of change.

Although Boards are struggling with many … Read the rest