Recommendations to Meet Future Governance Challenges

There have been significant, positive changes in boardroom practices over the past 25 years. However, there is still work to do, says the author, whose expertise in corporate governance matters was tapped for lawsuits involving the Tyco and Enron fiascos at the dawn of this new century. Drawing on decades of research and experience, the author outlines the major problems that boards have faced over the past quarter century and the solutions proposed to overcome them. He warns of the negative, unintended consequences of some of these solutions, many of which were not thought through carefully and may be based on false premises. Finally, he offers four recommendations for directors, CEOs, shareholders and other stakeholders on how to meet future governance challenges within the wider context of business. Put simply, there needs to be open communication between all parties and a consensus on the ultimate purpose of the firm.