When people like Peter Drucker, Warren Buffett, and Carl Icahn blame nearly every economic fiasco over the last 70 years on your institution, it may be time to consider a new approach. This is the case with boards of directors and corporate governance. To make this point another way, consider this question:
"How much less shareholder wealth would have been created in 2008 if all the traditional governance experts and corporate directors had taken the year off in 2007?" The fact that this is a ridiculous question cleary indicates that past and present aproaches to corporate governance have not, are not, and will not work. It's time for a change - a big change! We recommend a principle-based approach. Here's three of ours to get you started in the right direction:
Principle 1: Corporate governance is a system made up of interdependent parts. These parts are not like items on a menu you can pick and choose. All are essential to the performance of the whole.
Principle 2: The board of diectors is a governance mechanism available to risk-bearing owners to direct and control decision-making managers. When these managers depart from a principle-based management aproach and destroy shareholder value, boards are malfunctioning as an institution.
Principle 3: Corporate Governance should be regulated to assure a principle-based approach. Anything less is not enough regualtion; anything more is too much.
To learn more abour our breakthrough, wealth-creating, principle-based approach to corporate governance, please contact us at 201-315-3653.
Until then, good luck and good governance.
Mark W. Sickles
Shareholder Value Assurance
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