Boards of directors in corporate America, having failed to stop companies such as Enron and Lehman Bros. from self destructing, will emerge from the financial crisis with enhanced clout, independence and diversity - and a new mandate to really use their new new role to stop abuses and recklessness. "We're entering into an environment where boards are going to be more accountable," said Clifton Robbins, CEO of Blue Harbour Group.
Governance changes are being fueled in part by popular anger over large payouts to bank executives who received federal funding to stay afloat, said Kenneth Feinberg, who on behalf of the Treasury Department determines compensation for the top 25 executives at the seven major financial institutions bailed out by the government. "One of the important lessons of the last two years," he said, is that "the American people want stronger executive compensation reform and regulatory reform to give government institutions more authority over how these corporations manage themselves."
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