A group of prominent corporate leaders and institutional investors — including Warren Buffett, Jeffrey Immelt, and Larry Fink — recently unveiled the Commonsense Principles of Corporate Governance. Intended to strengthen corporate governance at U.S. companies, the guidelines contain helpful (although not entirely novel or innovative) recommendations such as compensating outside directors with stock, giving non-executive directors unfettered access to management, and discouraging the practice of earnings guidance.
Improving the Way Boards, CEOs, and Shareholders Interact
A high-profile new proposal doesn’t go far enough.
July 28, 2016