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December 27, 2006
Electing directors is a changing picture, Wed., Dec. 27, 2006, 4:33 PM
Apparently, at the start of the year, only one company in six required each director to be voted by majority as opposed to being part of a "management approved" slate. Now that number is up to 36 pct, and Lehman Bros has joined that group. Perhaps in three or four years, it will be close to 100 pct.
Is that enough? I think there will first need to be a slate of independent director approved nominees before we see a dramatic improvement in corporate governance. I'd also like to see one executive (from management) chairman and one non-executive (independent) chairman, and no other executive positions on the Board. Furthermore, I don't see why any executive member of a Board should have a vote on certain matters.
In any event, there are improvements being made. I don't think in ten years there will be McKinnell or Grazzo-type one and two hundred million dollar compensation schemes. Although I suppose that if central banks keep printing money at this rate, even the factory workers will soon be making a million a year and living in million dollar homes, and the Dow will be north of 25,000.
Posted by Posted by Bill Cara on December 27, 2006 04:33:10 PM | Category: Cara Today in the Market
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