509 Posts Found

Who, what, where and why? These are all questions that arise from the complex subject of executive compensation, and the individual questions do not exist in a vacuum. Rather, each element that determines executive compensation, such as the type of company and the country where it is located, affects every other element involved. The “gold standard” of executive compensation for many years has been the … [ Read more ]

Content: Article | Authors: Jordan Otten, Luis R. Gómez-Mejía, Pascual Berrone | Source: IESE Insight | Subject: Corporate Governance

Corporations grant executive recruiters wide latitude in choosing leaders for them. What do recruiters know that we don’t – and should they really have so much power?

Content: Article | Author: Joseph Daniel McCool | Source: Across the Board (ATB) | Subjects: Corporate Governance, Human Resources, Organizational Behavior | Industry: Personnel / Staffing

Information asymmetry may never be more pronounced than in the imbalance between managers and board members. Simply put, management knows more than the board. To level the playing field, the board can implement performance-based incentive systems. But these authors question, to what extent should boards integrate financial and non-financial measures of performance in corporate incentive plans?

Content: Article | Authors: Eduardo Schiehll, Paul André | Source: Ivey Business Journal | Subject: Corporate Governance

Much of the debate and investigation of corporate collapse and failure has focused on boards and directors. Not so much attention has been given to the role of those who inform and advise them: the gatekeeping professions who play a vital and influential role in modern business.

In the book, John Coffee, world-renowned Professor of Corporate Law, explains how the professions have evolved, performed and changed … [ Read more ]

Content: Book | Author: John C. Coffee | Subject: Corporate Governance

You can’t do better than what Warren Buffett said to the people at Salomon Brothers many years ago: “If you lose money for us, we will be forgiving. If you lose reputation for us, we will be ruthless.” You make the situation clear by stating your intentions and you back them up in the design of your compensation program. If there’s any suggestion of bad … [ Read more ]

Content: Quotation | Author: Nell Minow | Source: strategy+business | Subjects: Compensation, Corporate Governance, Human Resources

Inside the Boardroom goes where few have gone before—behind the closed doors of actual boardrooms—to reveal how boards really work. Based on a five-year study, this book goes behind the scenes to reveal the inner workings of boards of directors, candid interviews with directors, and a comprehensive investigation into boardroom processes. It challenges the status quo thinking on corporate governance and provides ground-breaking prescriptions for … [ Read more ]

Content: Book | Authors: James Gillies, Richard LeBlanc | Subject: Corporate Governance

An important American thinker in the early part of the twentieth century, James Burnham saw owners and managers in a perpetual struggle for power. In important respects, his ideas still resonate.

Content: Article | Author: Morgen Witzel | Source: European Business Forum (EBF) | Subjects: Corporate Governance, History, People

Leadership transitions are complex. Exchanges of responsibilities contain any number of challenges, primarily because they happen in real time with no pause in the organization’s activities. The exiting executive is in the best position to direct events so that newcomers can avoid the usual “perfect storm” of tests: an overly stimulated imperative to jump into the job with both feet, ready for action; a sense … [ Read more ]

Content: Article | Authors: Nathan Bennett, Stephen A. Miles | Source: strategy+business | Subjects: Corporate Governance, Human Resources, Leadership, Management

Seth Levine talks about the importance of a board of directors doing a CEO review and provides a relevant template.

Content: Article | Author: Seth Levine | Source: Seth Levine’s VC Adventure | Subject: Corporate Governance

New research suggest that the best way to promote fraud detection is to extend the Federal Civic False Claim Act to corporate fraud.

Content: Article | Authors: Adair Morse, Luigi Zingales | Source: Capital Ideas | Subjects: Corporate Governance, Legal, Miscellaneous

Here’s a simple diagnostic tool that can be used to facilitate your firm’s discussions of the characteristics it seeks in a leader. The questions that follow include a series of “paired” qualities that a good leader might possess. In each pair, either quality may be desirable. However, the point of pairing these qualities is to ask, If there had to be a choice between the … [ Read more ]

Content: Article | Author: David Maister | Source: Business Finance Magazine | Subjects: Corporate Governance, Leadership

Most of the talk about better corporate governance has focused on the independence of directors and the separation of the CEO and chair. Not so, argue these authors, who point out that the most important factor is board process — how boards work and reach the decisions they do. Improving process will not only improve board governance but will prove that there really is a … [ Read more ]

Content: Article | Authors: James Gillies, Richard LeBlanc | Source: Ivey Business Journal | Subject: Corporate Governance

Nothing reinforces more the view that corporate chieftains are overpaid than the sums awarded CEOs given the boot. To be sure, some executives earn their lavish pay packages. And companies now accept in principle that compensation should be tied to performance. But in practice the disconnect between pay and performance is a persistent and troubling problem at many large public corporations. But what if sophisticated … [ Read more ]

Content: Article | Author: David Carey | Source: TheDeal.com | Subject: Corporate Governance

A board member primarily focuses on four things. First, strategy. Long-term strategy and execution are paramount. You need to have an aggressive goal and a plan on how to reach that. The second thing is performance management — how you are doing against the goals and what resources you need to devote toward that. How do you achieve the objectives? The third is the talent … [ Read more ]

Content: Quotation | Source: Across the Board (ATB) | Subject: Corporate Governance

Put together a group of strong-minded people, arrange for them to meet six times a year, have no performance targets for them, and recruit a number of outsiders with no knowledge of the industry or the company into the group. Would they function as a team? We doubt it. Yet this is how we organize corporate boards. They are thrown together half a dozen times … [ Read more ]

Content: Quotation | Source: Across the Board (ATB) | Subject: Corporate Governance

The belief that governance best practices lead to superior firm performance is widespread. But as academic research and this article demonstrate, most studies prove that there is no link between governance and performance. Nor is there proof that the highly desirable director independence has a positive impact on firm performance.

Content: Related Content | Author: Beth Young | Source: Ivey Business Journal | Subject: Corporate Governance

It is perhaps the core question in the ongoing debate over corporate governance: Does the corporation exist for the benefit of shareholders, or does it have other, equally important stakeholders, such as employees, customers and suppliers? A new study by Wharton finance professor Franklin Allen and two colleagues does not claim to provide a definitive answer, but it does show the various benefits of the … [ Read more ]

Content: Article | Authors: Elena Carletti, Franklin Allen, Robert Marquez | Source: Knowledge@Wharton | Subjects: Corporate Governance, International

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What does it take to manage a smooth leadership transition? Chief Executive magazine convened a roundtable to discuss this issue.

Content: Related Content | Subject: Succession Planning

A well designed pay program must attract and retain high caliber executives. Meeting this challenge has become more intense and complex since stock options began to fall out of favor. These authors, specialists in executive compensation, put forward alternative programs that can complement, or possibly replace, options. If adopted, they can force organizations and their boards to understand different measures of performance.

Content: Article | Authors: Claude Boulanger, Jeff Kozan | Source: Ivey Business Journal | Subject: Corporate Governance