During the corporate proxy season you will come across several stories regarding negligent directors, excessive executive compensation and failure of investors in exerting influence over management and board. Given below are certain tips which can help in improving corporate board:
Communication
The best board is one which listens and hears and they must reach out to shareholders for inputs on critical policy decisions.
Creating value through mutual respect
Stockholders should respect people putting in their time and energy into governing public companies.
Accountability
Appointment and oversight of the CEO is one of the most important functions to be performed and they must realize that there are important implementation challenges and directors must be subjected to claw back on pay in case they fail to achieve an orderly transition in leadership.
Establishing an owners relations committee
Like audit or compensation committee, group of directors must be charged be with engaging the stockholders on a regular and meaningful basis.
If you would like to learn more about corporate governance you can subscribe to magazine, journals or newspapers such as wall street journal subscription to enhance your knowledge.
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