Corporate Governance: the United States of America vs. the European Union
The following paper will compare and contrast corporate governance in the U.S. and European Union. Because corporate governance regulations are not yet uniform across all EU countries, we have chosen to examine Poland in particular. We will first present U.S. corporate governance and the Sarbanes-Oxley Act of 2002, and then examine how Poland's corporate governance regulations compare. Finally, since we have already learned about Corporate Social Responsibility for U.S. companies, we have examined Corporate Social Responsibility in Poland, looking specifically at the largest airline in Poland, LOT. U.S. Corporate Governance
Due to several U.S. corporations violating the public trust and federal laws, the Securities …show more content…
The eighth rule's aim is to increase shareholder control over equity-compensation plans, by ensuring that shareholders are given the opportunity to vote on all equity-compensation plans, except inducements options, plans relating to mergers or acquisitions, and tax qualified and excess benefit plans (*NYSE, 13). Recently, equity-based rewards have been a very important component to employee compensation. Stockholder approval on all such awards provides a checks and balance, along with a chance for alignment between shareholder and management interests.
Rule nine stipulates the need for listed companies to adopt and disclose corporate governance guidelines. Since one set of guidelines could not "fit" every company, only key areas and universal concepts need to be addressed, including but not limited to: Director qualification standards, Director responsibilities, and Management succession (NYSE, 14 & 15). Also required is a yearly proxy statement, which must be available to any shareholder who may request it.
Rule ten, demands that companies establish and disclose a code for business conduct and ethics for directors, officers, and employees. Also