Government protecting stockholders assignment

Government protecting stockholders assignment - decisions...

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Lauren Brockmiller Business 101 Dr. Barr 1/26/10 The Principles of good governance are: Selecting outside directors to fill most positions, Holding open elections for members of the board, appointing an independent lead director and hold regular meetings without the CEO present, Aligning director compensation with corporate performance, and Evaluating the board’s own performance on a regular basis. Selecting outside directors is good because if only people from inside the company were selected, decisions would be made solely around these employees. Having people from the outside helps the company look at every angle of a decision they are making. Holding open elections for members is also another good practice because people can choose who they want to represent them. They can get through to the board that way. Appointing a lead director gives the company and the CEO some leeway. The CEO doesn’t always have to be responsible for the
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Unformatted text preview: decisions made. This is good because the CEO cant put actions into place that would hurt the company. Aligning director compensation with corporate performance is also important. If someone is doing a poor job, why would you pay them a lot of money? Lastly, Evaluating the boards performance is always good because people can see what the board is doing and how they are doing it. They can decide if they like it and see if changes need to be made. The government helps protect stockholders by making sure that stock markets are run fairly and that investment information is fully disclosed. Government regulation is needed because stockholders can lose money or property by people not using the market fairly. The Securities and Exchange Commission is in charge of making sure the market is run fairly....
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Government protecting stockholders assignment - decisions...

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