Corporate Governance
A Model for Excellence
PointStar has been conducting research to identify the essential
elements of outstanding corporate governance. Based on a large
number of interviews with directors and senior executives and
on our extensive consulting experience with executives, directors
and boards, we believe that good corporate governance is comprised
of at least 4 critical elements.
They are:
- Assuring corporate credibility
- Proactive board Involvement in board role definition
- Excellent decision support and performance tracking information
- Effective CEO and director interactions
Our interviews make it clear the boards and managements today
are largely focused on credibility and regulatory compliance.
While necessary, these simply do not represent enough of a change
to adequately protect shareholder value and minimize the chance
of significant failures or oversights. True governance transformation
will require extensive changes in the ways directors work with
each other and with their CEO, director access to independent
information and analysis and thoughtful redefinition of the board's
responsibilities and measurement processes. |
