The traditional corporate governance model of shareholder primacy faces an extended period of transition, but exactly what comes next is unclear. Market actors - companies, trade associations, investors, legislators, and entities focused on environmental risk and social benefits - are debating the governance framework of stakeholder management – that is a framework that considers all of a company’s constituents: shareholders, employees, customers, suppliers, and surrounding communities.
That sentiment makes for good press, but the details have yet to be ironed out. How does a company set goals and measure progress? How does a company balance competing concerns? Would shareholders (with the power to elect the board) accept lower financial returns if it meant the company could increase wages or avoid layoffs, or pay for cleaner (but more expensive) energy?
The Center On Executive Compensation (COEC) supports a principles-based approach to disclosing data germane to a company’s risks and opportunities and developing effective corporate governance policies. At it’s best, corporate governance provides shareholders with the right and opportunity to hold boards accountable while also providing boards and executives with the authority to manage both the day-to-day operations and strategic planning.
Discover corporate governance news, including the latest on shareholder’s rights, board structures and policies, and emerging models such as Stakeholder Capitalism
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Explore Corporate Governance Resources
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Allianz Global Investors to Companies: Tie Pay to ESG…Or Else
March 3, 2023 | News -
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Stock Buybacks on Trial
March 3, 2023 | News -
Member Only
CEOs Pessimistic on Company Viability, Says Study
February 3, 2023 | News -
Impress the Board: 5 Tips to Improve Board Effectiveness
February 3, 2023 | News -
Member Only
A Checklist for 2023 Proxy Statements (And Annual Meetings)
January 28, 2023 | News -
Member Only
The 5-Year Evolution of Retention Awards
November 4, 2022 | News
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Human Capital and ESG Corporate Governance Practices
June 16, 2022 | Survey -
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A Multi-Stakeholder Approach to Assessing Risk and Incentives
June 10, 2022 | Analysis -
FTC Proposed Ban On Non-Complete Agreements - Center On Executive Compensation Comments
October 8, 2021 | Advocacy -
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Quick Survey Results: Executive Titling and Board Service
July 16, 2021 | Survey -
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Quick Survey Results: Pay Equity Practices
March 26, 2021 | Survey -
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SEC Proposed Rule Adds Human Capital Metrics Disclosures to Form 10-K
September 3, 2019 | Commentary