Matthew J. Mallow’s new paper on index funds: This paper seeks to ground the debate around asset managers, index funds and corporate control firmly in the practical context of the operation and regulation of asset managers. Acting on be- half of clients, asset managers are incentivized to monitor companies for long-term performance. As minority shareholders,…
Tag: corporate governance
Larker and Tayan Re-Discover the Governance Wheel
Stanford’s David F. Larcker and Brian Tayan have a new paper called Loosey-Goosey Governance: Four Misunderstood Terms in Corporate Governance in which they appear to think they’ve discovered what everyone has understood forever — that there are limits to structural solutions and that checklists of best practices are not especially helpful. We were very clear…
VEA Vice Chair Nell Minow on Motley Fool Money: We Work, McDonald’s, and More
VEA Vice Chair Nell Minow appeared on Motley Fool Money to talk about current issues in corporate governance including We Work and a wave of CEO departures.
Interview With Ira Millstein — WSJ
One of the founding fathers and true visionaries of modern corporate governance is Ira Millstein. The WSJ asked him for his thoughts on the BRT’s stakeholder statement (he says it is not specific enough) and on the state of corporate governance today. An excerpt: In 1979, the Business Roundtable conducted a series of hearings and…
WeWork founder Adam Neumann’s $1.7 billion payout from Softbank is unprecedented – Vox
VEA Vice Chair Nell Minow is quoted about the astounding payout to ex-We Work CEO Adam Neumann — $1.7 billion for his stock plus $185 million for consulting services AND a $500 million credit line. “He basically said, ‘This is what I need in order to leave,’ and they’re finding different ways to categorize that…
WeWork IPO Struggles with Valuation and Governance Concerns
Since We filed the prospectus for its initial public offering last month, it has been besieged with criticism over its governance, business model and ability to turn a profit. It is now expecting an IPO valuation as low as a third of the $47 billion sticker price it garnered in a January funding round—a drop…
Nell Minow on Bloomberg’s Law X.0 Podcast
VEA Vice Chair Nell Minow appears in the first episode of Law X.0, the new podcast from Bloomberg Lsw, hosted by Megan McEvoy and Dori Goldstein.
The Trust Crisis
Sandra J. Sucher and Shalene Gupta write about trust as an essential element of a company’s brand and risk management strategy, with Boeing, Volkswagen, and Facebook as examples of corporations that are failing to maintain the trust of customers, regulators, and investors. Trust, as defined by organizational scholars, is our willingness to be vulnerable to…
FTC’s $5 Billion Fine Alone Won’t Get Facebook Out of Crosshairs – WSJ
“Five billion is literally the cost of doing business,” said Marc Rotenberg, head of the Electronic Privacy Information Center, which has long pushed for greater regulatory scrutiny of Facebook’s privacy practices.“If they get some serious new privacy obligations, that would be interesting. If they got governance reform, that would be interesting. What would not be…
