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S and uk shareholders have the right to elect the

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Unformatted text preview: Canada, the U.S. and UK – shareholders have the right to elect the board of directors – Independent board: curbing the agency problem Independent – In England, the majority of public companies voluntarily abide In by the Code of Best Practice on corporate governance Code » at least three outside directors and the board chairman and at the CEO should be different individuals Germany – Represents the interests of stakeholders (e.g. workers, creditors, etc.) as well as shareholders etc.) In Japan, most corporate boards are insider-dominated and primarily In concerned with the welfare of the keiretsu to which the company keiretsu belongs belongs 19 Incentive Contracts It is difficult to design a compensation scheme that gives It executives an incentive to work hard at increasing shareholder wealth shareholder Accounting-based schemes are subject to manipulation Executive stock options – Executive Stock Options are call options (technically warrants) Executive on the employer’s shares. » Inalie...
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