Corporate Boards Seen As Aligned with Management Rather than Shareholders, According to a New Survey By FTI Consulting and FD

Perception of Misplaced Allegiances Is Negatively Affecting Corporate Reputations, According to High-Net Worth Investors and Financial AdvisorsFive Years Later, Sarbox Seen AS Having Limited Impact on Improving Governance Practices

FTI Consulting, the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value and its strategic communications subsidiary FD, today released findings of a new survey showing that in the opinion of the surveyed high-net worth investors and financial advisors, corporate board members are too closely aligned with the interests of executive management teams, as opposed to shareholders.

The survey of more than 200 high-net-worth investors and professional financial advisors, administered by independent research firm Affluent Dynamics, revealed that clear majorities (61 percent of financial advisors and 64 percent of high-net-worth individuals) say that boards operate in the interests of management, rather than those of shareholders. Based on these findings, corporations have significant work to do to reassure investors and their advisors about the effectiveness and quality of corporate governance practices and whether these practices are appropriately safeguarding corporate reputation, which both groups consider to be crucial in the creation of shareholder value. More specific findings of the survey follow:

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