How can our major institutions, particularly from the banking and finance sector retain their corporate legitimacy? What role should their boards be playing?
The corporate sector owes David Murray a debt of gratitude for starting a debate about ASX governance rules that lead boards to delegate matters that are properly their responsibility.
Evidence to the Banking Royal Commission points to the systemic failings of corporate governance built on the idea of shareholder primacy. It’s time to rethink the unitary board system for a start.
Pressure to meet ever-higher performance targets can lead to misconduct of the sort exposed by the royal commission. Targets need to operate within a framework of ethical governance to avoid this.
In choosing not to impose restrictions on bonuses and commissions, the government left untouched the incentives for inappropriate financial advice and lending decisions.
High CEO compensation angers the public, particularly when it doesn’t seemed tied to performance. But as a whole, trends in executive compensation are consistent with fundamental economic forces.
Corporates are willing to embrace corporate social responsibility initiatives. But many fail due to cultural insensitivity and misplaced communication strategies.
The share of board seats held by women varies dramatically across the country, from none in Alaska to close to half in New Mexico. A few key policies may make all the difference.
Associate Dean, Research and External Relations; Executive Director, Madden Center for Value Creation; Phil Smith Professor of Entrepreneurship, Florida Atlantic University