Bloomberg (January 19)
“The actions that the European Central Bank will finally announce this week won’t give the continent the boost it needs.” The EU still depends on a “broken” system of economic governance. “What’s remarkable is that Europe’s governments haven’t even begun to confront this larger issue.” It is unrealistic to think that the ECB can again save the day. “Not even Mario Draghi can save Europe now.”
Tags: Broken, ECB, EU, Governance, Governments, Mario Draghi
Financial Times (October 22)
“Hitherto it has been assumed that China, rather than western democracies, will face chronic problems of governance.” But China’s political system is not its Achilles heel. “Rather than dismiss the Chinese governing system as fragile and tenuous, we need to understand what has been…. an extraordinarily successful institution, one that the world will increasingly come to recognise it must learn from.”
Tags: Achilles heel, China, Democracies, Governance, Institution, Successful
Financial Times (June 4)
Just as the World Cup is about to kick off in Brazil “the prestige sporting event has been tarnished by allegations of corruption at Fifa, world football’s governing body, over the choice of Qatar to host the 2022 competition.” But alleged bribes are hardly Fifa’s first red card. “Fifa is a body that has been mired in corruption allegations for so long – and which has been so lame in mending its shoddy governance – that it demands a complete overhaul.”
Tags: 2022, Allegations, Brazil, Corruption, FIFA, Football, Governance, Overhaul, Qatar, Soccer, World Cup
Wall Street Journal (May 18)
“Indians put their faith in a party promising economic opportunity and better governance over the traditional Indian formula of welfarism, patronage, corruption and hostility to foreign competition. Mr. Modi will be the first Prime Minister to govern without a coalition in nearly 30 years, and he has a rare mandate to enact market-opening reforms.”
Tags: Coalition, Corruption, Foreign competition, Governance, India, Mandate, Modi, Opportunity, Patronage, Prime minister, Reforms, Traditional
The Economist (January 25, 2014)
“In some ways, China’s market is still the world’s most enticing. Although it accounts for only around 8% of private consumption in the world, it contributed more than any other country to the growth of consumption in 2011-13.” But China is proving vexing to foreign firms as they find themselves subject to government whims, strong local competition, a tighter labor market and slowing growth. Some are scaling down. Others stumbling or even pulling out. “China is still a rich prize. Firms that can boost productivity, improve governance and respond to local tastes can still prosper. But the golden years are over.”
Tags: China, Competition, Consumption, Enticing, Foreign firms, Golden years, Governance, Government, Growth, Labor market, Productivity, Slowing
The Guardian (November 3)
Looking at ways to strengthen corporate governance in the UK, Prime Minister David Cameron says it’s important “to make sure non-executive directors on boards are not the usual sort of rotating list of men patting each other’s backs and increasing the level of remuneration. I want to see more women in Britain’s boardrooms, which I think would have a thoroughly good influence.”
Looking at ways to strengthen corporate governance in the UK, Prime Minister David Cameron says it’s important “to make sure non-executive directors on boards are not the usual sort of rotating list of men patting each other’s backs and increasing the level of remuneration. I want to see more women in Britain’s boardrooms, which I think would have a thoroughly good influence.”
Tags: Boards, Cameron, Directors, Governance, UK
Wall Street Journal (November 2)
“Investors have lost $46 billion on Olympus, Daio, Kyushu Electric and Tepco combined this year, not to mention other scandals over the years. Bad corporate governance is a costly mistake Japan can ill afford, and a growing embarrassment for a country that deserves far better.”
“Investors have lost $46 billion on Olympus, Daio, Kyushu Electric and Tepco combined this year, not to mention other scandals over the years. Bad corporate governance is a costly mistake Japan can ill afford, and a growing embarrassment for a country that deserves far better.”
Tags: Governance, Investors, Japan, Scandals
Pensions & Investments (June 13)
“Say on pay” is helping governance grow up in the U.S. In the past investors upset over executive compensation might withhold votes for each member of the compensation committee. Now that they can directly vote against the compensation packages, corporate directors are being re-elected at the highest level of approval (95.3%) in half a decade. As Anne Simpson of CalPERS stated, “We’ve seen less megaphone diplomacy…. But we’ve seen a significant increase in real conversation, real dialogue” between shareholders and companies.
Tags: CalPERs, Compensation, Directors, Governance, Say on pay, Shareholders, U.S.
Bloomberg (March 9)
Hewlett-Packard is under fire (again). This time the issue is CEO Leo Apotheker’s involvement in the nomination of five new directors. Company rules stipulate this process must be conducted by independent directors. Because they failed to uphold the nomination process, proxy adviser ISS is recommending “no” votes against 3 directors standing for re-election and against the CEO’s remuneration. “The CEO’s formal participation in the ad hoc committee established to identify potential director candidates runs contrary to the Nominating and Governance Committee’s Charter.”
Tags: Directors, Governance, HP, ISS, Nomination, Proxy adviser
Wall Street Journal (February 25)
The Wall Street Journal applauds a new chapter of shareholder engagement. “After two decades of disappointing market performance, some Japanese institutional investors finally appear ready to reinvent themselves as advocates of higher shareholder returns and improved corporate governance.” The catalyst for the story is the new fund being established by Tokio Marine Asset Management Co. and U.K.-based investment group Governance for Owners LLP (GO), which represents several large overseas pension funds. Beginning in April, the new fund will invest up to 100 billion yen in 10-30 small- and mid-cap companies with the aim of improving governance at the firms. In contrast to Steel Partners and other highly publicized activists of recent years, the new venture seeks to raise long-term value using a Japanese approach to engagement through dialogue.
Tags: Activists, Engagement, Governance, Japan, Shareholder
