One year on and Sarbox has created process, process and more process. Hell may freeze over before analysts get the job done
Process is the bindweed, the giant Japanese hogweed, of corporate governance. Relax your vigilance for a moment and it will strangle your whole business. The bright intelligent things that can be done within a business will cease. Forget judgement. You will be lucky to have a coffee machine that remains working.
Take Unilever. Look at its most recent corporate governance disclosures. On page 53 of its annual report, it states: “The board level changes lead to a reduction in the number of executive directors. Further information is given in board changes on page 70.” So turn to page 70. “The changes to our board structure described on pages 8 and 53 result in a smaller board,” it says. Unilever is not being wilfully obstructive or obtuse, but someone has filled out the forms for that bit of corporate governance compliance without engaging brain with process.
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