Browsing All Posts filed under »Corporate Governance«

Which Corporate Governance Factors Impact Shareholder Returns?

November 15, 2010


Lucian Bebchuk, Alma Cohen and Allen Ferrell of the John M. Olin Center for Law, Economics and Business at Harvard University published a study in 2004 entitled What Matters in Corporate Governance? They studied twenty-four different governance provisions and tested for correlations with firm value and stockholder returns.  They found that only six corporate governance […]

How Company Chief Executives Get Lucky with their Stock Option Grants

September 30, 2010


The cynic within me has always believed that company board remuneration sub-committees are always working hard to find excuses to maximise the amount of shareholders’ cash awarded to the executives (and to themselves) in the form of salaries, bonuses, pensions, option-grants, and various parachute payments to protect the management teams’ wealth when things happen to […]

Why Hire an MBA-wielding CEO?

September 14, 2010


The conventional wisdom today regarding the hiring of senior management, particularly in the USA, is that aside from extensive experience in across a firm/industry, it is advantageous if the hiree also holds advanced academic qualifications, of which the MBA is the most favoured. This study from 2005 shows that 62% of S&P 500 company chief […]