A recent McKinsey survey of 150 corporate directors and of 44 institutional investors with over $3 trillion in assets under management reveals that both of these powerful groups are dissatisfied with the pace and extent of corporate-governance reform and agree about which changes are needed to advance it.
The take-away
Directors and investors want to split the roles of chairman and CEO, to increase the accountability of directors, and to reduce executive compensation.
See article:
Since the passage of the Sarbanes-Oxley Act, considerable progress on governance reform has been made. Yet McKinsey surveys reveal that two powerful interests—directors and institutional investors—broadly agree that additional reform is needed.
In conjunction with the Directorship Search Group and the Institutional Investors Institute, we surveyed 150 US corporate directors serving as members of boards of more than 300 public companies across all economic sectors. Additionally, we heard from 44 US-based fund managers representing both public and private funds with a total of $3 trillion in assets under management.
These directors and investors wanted to see changes in three areas in particular: separating the roles of chairman and CEO, improving board accountability, and reforming executive compensation.
See full Article.
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