Corporate Governance: The Issues of Ownership
26 January 2010
Whilst a lot of people seem to have their fingers in the governance pie, it seems difficult to pin down ownership. This is a highly topical issue in light of recent events and controversies in the executive remuneration arena. It is now essential to critically consider the roles and responsibilities of the various stakeholders in the governance process including the Board, Remuneration Committee, HR Director and Reward Consultants.
In this session, Professor Julian Franks of London Business School drew on an international perspective, along with a comparison between privately owned and quoted companies, in order to highlight the issues and put them in the context of recent and future governance developments.
Professor Franks’ presentation comprised:
- A study of how ownership affects corporate governance;
- A perspective on what is right and wrong with the UK governance model, including a comparison with the US model;
- A critical review of plc Boards – their roles and their effectiveness.
This helped to frame a highly interactive debate in which we explored the key issues relating to stakeholder roles and responsibilities in the governance process.