The investors of Capstone are people who put their money in the company and expects profits. Capstone shareholders rely on a board of directors to make sure customers' deposits are secured and invested safely, interest is paid to depositors, and that the customers' principal is available to them on request.
Positive aspects
• The board of directors is experienced and monitors the board members have a limit of years.
• Chairman is not CEO, meaning that the head of the board of directors and the CEO are not the same person, when the same person performs both assignments reduces the effectiveness. When the CEO is also the chairman, a conflict of interest arises, because the CEO is voting on his or her own compensation.
• To avoid this conflict …show more content…
• Capstone has signed the UN Global compact which means that CapStone do business responsibly by aligning their strategies and operations with the 10 principles on human rights, labour, environment and anti-corruption.
Negative aspects
• The management/board of directors of capstone has not integrate the environmental, social, and governance (ESG) to their strategy and this issue can affect the performance of investment portfolios. In the last decade responsible investment (RI) has become a much larger proportion of the investment market, meaning that investors want to invest in responsible companies.
• Capstone has 8 people in the board of directors, the average size of boards across companies is 9.2 and ideal board size is 7. The size of the board is important because many members represents a challenge in terms of using them effectively and affects the member’s individual participation.
• Company does not report on belonging to the CSR sustainability index. The indexes are important to make improvements to their long-term sustainability plans to remain on the
Positive aspects
• The board of directors is experienced and monitors the board members have a limit of years.
• Chairman is not CEO, meaning that the head of the board of directors and the CEO are not the same person, when the same person performs both assignments reduces the effectiveness. When the CEO is also the chairman, a conflict of interest arises, because the CEO is voting on his or her own compensation.
• To avoid this conflict …show more content…
• Capstone has signed the UN Global compact which means that CapStone do business responsibly by aligning their strategies and operations with the 10 principles on human rights, labour, environment and anti-corruption.
Negative aspects
• The management/board of directors of capstone has not integrate the environmental, social, and governance (ESG) to their strategy and this issue can affect the performance of investment portfolios. In the last decade responsible investment (RI) has become a much larger proportion of the investment market, meaning that investors want to invest in responsible companies.
• Capstone has 8 people in the board of directors, the average size of boards across companies is 9.2 and ideal board size is 7. The size of the board is important because many members represents a challenge in terms of using them effectively and affects the member’s individual participation.
• Company does not report on belonging to the CSR sustainability index. The indexes are important to make improvements to their long-term sustainability plans to remain on the