SEC: Donaldson spells out governance thoughts

Companies, management, and above all directors must redefine corporate governance with practices that go beyond merely complying with new rules, according to William Donaldson, chairman of the US Securities and Exchange Commission (SEC), in a speech to the Directors Education Institute at Duke University in North Carolina.

He added that corporate codes of ethics are meaningless if not backed up with action, and that a litmus test of corporate governance involved executive compensation. In making compensation decisions boards and committees, he argued, should focus special attention on long-term performance.

See full Manifest-i Article.