The Biggest Problem With Corporate Governance Is Hiding In Plain Sight

The Biggest Problem With Corporate Governance Is Hiding In Plain Sight by Andrew Hunt

Corporate governance is a topic that has been moving rapidly up the agenda. From environmental records to remuneration, stakeholders are demanding more transparency and more control.

Yet in spite of all the legislation, policies and organizations that have sprung up on the back of this new found interest, there is one simple and glaring flaw that almost every company in the world is guilty of.

To understand the problem, let’s begin with how listed companies are governed. At the top you have a board, typically consisting of a chairman and a number of directors, some of whom are usually independent or possess specialist expertise. Their job is to...