
the system of checks and balances designed to ensure that corporate managers are just as vigilant on behalf of long-term shareholder value as they would be if it was their own money at risk. It is also the process whereby shareholders-the actual owners of any publicly tradedfirm-assert their ownership rights, through an elected board of directors and the CEO and other officers and managers they appoint and oversee. In the heels of corporate scandals including the Enron debacle in 2002, a series of sweeping changes are being sought, such as forcing boards to have a majority of independent directors, granting audit committees power to hire and fire accountants, banning sweetheart loans to officers and directors, and requiring shareholder's approval for stock option plans. More specifically, the following principles stitute good governance:
Institutional Shareholder Services, Inc. (http://www.issproxy.com/), an influential proxy advisor, started scoring companies on governance issues.
Industry Associations
Council of Institutional Investors
Representatives of public and union pension funds and nonprofit foundations and endowment funds. Primary concern is to encourage pension fund trustees to take an active role in assuring that corporate ...
Members: 294
Founded: 1985