S and uk shareholders have the right to elect the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online