Good corporate governance is important for your portfolio. When you are in business with people who are interested in making sure you, the shareholder, get a fair shake, you are likely to have better results. Here are seven things you can look for in an owner-oriented enterprise.
1. Clearly Articulated Dividend Policy with Justifiable Rational
2. Management Stock Ownership Guidelines
3. Strong Directors That are Loyal to Shareholders, Not Management
4. Equity and Voting Rights Aligned
5. Limited Related-Party Transactions
6. Limited and Reasonable Stock Options and Executive Compensation
7. Open and Honest Communication
See full Article.
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