Browsing All Posts filed under »Corporate Governance«

Which Corporate Governance Factors Impact Shareholder Returns?

November 15, 2010

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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

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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

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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 […]