Winds of Corporate Governance Change Are Blowing

Yesterday, the U.S. Government announced major pay reductions for executives at companies recently aided by taxpayer funded capital infusions.  In addition, the Wall Street Journal reported that these same companies will be forced to make some significant changes in their governance structure and risk management practices.  Here is what one prominent corporate governance expert had to say about the demands.

The government’s move “is a seismic shift,” said Espen Eckbo, director of the Center for Corporate Governance at Dartmouth College’s Tuck School of Business. But the broader impact will be “much more significant from the governance side,” he added. Mr. Eckbo anticipates increased shareholder pressure on companies without federal bailouts to create board risk committees and split the roles of chairman and CEO. There likely will be more non-binding stockholder resolutions next year calling for such changes, he predicted. In particular, “risk committees are a no brainer.”

As more companies establish board risk committees, Enterprise Risk Management (“ERM”) programs will come under greater scrutiny and need to be more robust.  Wheelhouse Advisors can help strengthen your ERM program.  Visit www.WheelhouseAdvisors.com to learn more.

Corporate Governance

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About Wheelhouse Advisors
Wheelhouse Advisors LLC is the publisher of The ERM Current™, an online publication and blog dedicated to providing the latest updates on current trends in Enterprise Risk Management & Control. Wheelhouse Advisors provides cost-effective Enterprise Risk Management & Control solutions to both large and mid-size corporations. To learn more about Wheelhouse Advisors, please visit our web site at www.WheelhouseAdvisors.com.

3 Responses to Winds of Corporate Governance Change Are Blowing

  1. Pingback: Exploring an IT Operating Model for Enterprise 2.0 – Part 4: IT Governance « IT Organization Circa 2017

  2. Sonia Jaspal says:

    Hi! Great going. I am somewhat confused, are all your top posts for 2010 from 2009. How come you are getting hits to the same posts year on year.

    Kind regards,

    Sonia

    • You have a great point, Sonia. These stats were provided for posts viewed in 2010 and many were initially written in 2009. We believe this represents the staying power of the blog site. However, to make the stats more representative, we have updated the stats to include only the top 5 posts written in 2010. Thanks again for your astute observation.

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