Posts Tagged ‘board of director governance’
For every corporate accounting scandal, overpaid CEO or episode of imprudent risk taking, there’s usually one common denominator _ a board of directors who signed off on it. And while corporate boards, many of them dominated by retirees, have not had the kind of negative attention reserved these days for the Wall Street set, a new report highlights a number of questionable practices going on in America’s boardrooms that are not in shareholders’ best interests.
For most companies, the risk of securities litigation ebbed somewhat during the past two years, as the plaintiffs’ bar devoted much of its time and energy to complex and potentially lucrative actions against financial-services firms. Now, as the credit crisis wanes, the risk is rising again for non-financial companies.