When you compare executive compensation to household income, you noticed executive pay is not tied to performance, the average executive pay keep going up with no penalize from the board. “In the United States, the pay of CEOs at publicly traded companies went down in real terms by 46% between 2000 and 2011, although it bounced back—as did corporate profits—in 2012, while still remaining well below the 2000 level.” (Vanessa Sumo and Hal Weitzman, 2013). CEO dishonesty behavior widespread and…
off, then I would go through everything and figure out where the problem was. The rest of my day was typically spent pouring through emails, sorting through bills and making sure everything was getting paid on time. The bar where I worked also had a Board of Directors, so they would always be stopping in to see how things were going. Not much happened without their final stamp of…
that governance is primarily about protecting an organisation, whereas management is more about growing it (Ashe-Edmunds, 2016). The ERHA has a number of governing policies that specifically directs how board members can act. For example, no personal liability shall attach to a member of a board for anything done, permitted to be done or omitted to be done in good faith in the course of the operation of the relevant authority (Ministry of Legal Affairs, 2014). Given these points corporate…
management of the company. The internal structure of the Volkswagen is two-tier meaning that it has a management board and a supervisory board – which is appointed by the management board to oversee governance issues and which consists of representative of workers, shareholders and trade unions (Morrison 2015, p. 266). The fact that the supervisory board is appointed by the management board creates a conflict of interest when considering that members of the BOD will usually have individual…
run with a similar basic layout called corporate governance. Even within the company, interest can be categorized into two theories: agency theory and stewardship theory. Agency theory focuses on fixing the misalignment between shareholders and the board of directors in the running of the company. It states that agents will act with a more personalized selfish interest in mind rather than focusing on the interest of the whole, creating a conflict. On the other hand, stewardship theory is a…
Any person, or a group of people, directly or indirectly affected by the happenings in the company or a decision made by the company, is a stakeholder of that particular company. However, not all stakeholders are equal. For example, the decision of M/s Ujala’s company would affect it’s customer differently and creditors differently. The main responsibility of M/s Ujala is to give the interests of it’s stakeholder at utmost priority. Management must incorporate the corporate social…
Loob Holdings Sdn Bhd has been a master franchisee of Chatime brand in Malaysia. The CEO of Loob Holdings Sdn Bhd is Bryan Loo. His company get a crisis in early 2017 when the owner of Chatime brand, La Kaffa has terminated the master franchisee contract of Loob Holdings Sdn Bhd dramatically even though their agreement still has the remaining contracts for about 20 years that last until 2041. This is because La Kaffa claims Loob Holdings Sdn Bhd violates the contract term when their company…
Introduction Mitra Biotech is an Indian-American venture founded in 2009. Mallik Sundaram co-founded Mitra Biotech. He serves as the President and CEO of Mitra Biotech since its inception. The aim of Mitra Biotech has been to become a partner of choice to global pharmaceutical and biotech companies. They wanted to support new drug development as they navigate from late discovery to preclinical and clinical stages. Their objective is to enable rational drug discovery and personalized cancer care…
currently has a board of directors composed of 14 members, 4 of which are women, this is a 30% representation, we could wish that the Corporate Governance role model is not only perfect in his application and leading position of Corporate Governance application and constant improvement/update and shows the way by electing more women on his board, maybe even a 50% representation. Mr. Buffett has mentioned in his 2014 Letter to Shareholders…
According to Hendrickse & Hefer-Hendrickse (2012:198-200) there are five different classes of directors that are to be found on a Board of Directors, namely; 1. Director These are individuals that take on the role and position of a director of a company or an alternate director. These positions or roles can include such as a managing director, manager or even the secretary of the company (Hendrickse & Hefer-Hendrickse 2012:198). 2. Shadow director This director acts as a shadow. The actions…