The way some financial institutions are implementing compensation reforms suggests a strengthening alignment of interest among executives, their firms, and wider society.First, through mandatory deferral, payment in equity, and other mechanisms, bankers' pay is more exposed to longer-term...

While bankers and brokers remain everyone's favorite culprits for causing the great financial crisis two years ago, a less likely suspect - the institutional investor community - is increasingly coming under scrutiny for passive corporate governance and a focus on short-term returns that enabled...

This article argues that the new UK Stewardship Code for institutional investors is insufficiently robust in light of acknowledged shortcomings in institutional shareholder monitoring of investee companies

Shareholders around the world are seeking greater dialogue with boards of directors of investee companies on an expanding array of topics. For example, demands by investors in the US and other markets for greater shareholder rights - such as an advisory vote on remuneration - are in part efforts...

Over the past decade, a growing proportion of US companies have separated the roles of chairman and CEO. The split leadership model, however, has not worked successfully at all firms.This article argues that insufficient attention to the human dimension - in particular, individual mindset,...

Following the controversial acquisition of British confectionery maker Cadbury by American food giant Kraft, the Takeover Panel is evaluating whether the rules governing takeovers in the UK should be fundamentally reformed.This article argues that the proposal to frame shareholders as long-term...

This commentary argues that disparity in stature between the chief executive and other directors (for example, a 'star' CEO whose accomplishments and renown are much greater that the non-executive directors) can harm board performance and provides suggestions on how parity in stature among board...

This article examines the key topics relating to institutional investor responsibilities and stewardship. It reviews the developments contributing to the increasing scrutiny of institutional shareholders and the standards and guidelines introduced to promote active ownership. The article also...

This article examines conflicts of interest in the investment industry and remedies to enable institutional investors to be more active on corporate governance matters. The key points are: Conflicts of interest at investment firms arise at three levels – institution, individual, and group –...