MGMT 4000 Chapter Notes - Chapter 2: Strategic Management, Center For Process Studies, Succession Planning
27 Nov 2017
School
Department
Course
Professor
Document Summary
Corporate governance: refers to relationship between board of directors, top management & shareholders in determining the direction & performance of the corporation. Increasingly, shareholders have questioned the role of board of directors: concerned they"re using their position to feather their own nests & that outside board members often lack sufficient knowledge/involvement/enthusiasm. Inside directors: are typically officers or executives employed by the corporation: vast majority are ceo or coo or cfo, few inside directors receive extra compensation for assuming this extra duty. Impact of sarbanes-oxley on us corporate governance activities: formalizes greater board independence & oversite. Act designed to protect shareholders from excesses & failed oversight that characterized criminal: ex: act requires directors on the audit committee be independent of the firm and receive no fees other than for services of the director. 2 major primary responsibilities: provide executive leadership & vision for the firm, manage a strategic planning process.
