Corporate Governence

Since the global attention of the issue arose with Microsoft and Enron many people have developed their own stand on the issue. As the top company executives are receiving excessive pay, the board of directors no longer hold the stockholders best interests at heart, analysts have become corrupt, and botched accounting practices are surfacing the public is becoming skeptical. Shareholders are selling stock and employees are left disgruntled as their superiors are committing breaches of trust by getting rich by tapping into funds for employee benefit programs and salary increases.

The lack of faith in Corporate America has created the biggest crisis in capitalism since the trustbuster era, which was led by Theodore Roosevelt. At that time the concern was over monopolization, now the focus is centered upon “co

Even though the board is appointed to supervise management the shareholders need to keep their eyes focused on the board. This is hard to accomplish since boardrooms are closed to investors. Investors have become too trustworthy and dependent on the board members. My suggestion is for shareholders to lobby to get these boardrooms open. The article also discusses enacting board membership regulations. Examples are: requiring members to resign after 10 years or at the age of 70, and restricting former CEO’s to serve on the board.

While I do feel some degree of sympathy for the employees of Enron who lost all of their investments and benefits of the company part of me wonders why they weren’t smart enough to know not to “put all of their eggs in one basket.” I agree with Eugene J. Becker, a small investor near Baltimore, who states in the article that stockholders need to show their disillusionment in tangible ways. I have recently taken what he said to heart by using my true feelings to cast my annual votes for Prudential, in which I am a shareholder.

In conclusion, people who feel that they are invincible and are essentially governing themselves are leading today’s leading companies. In order for corporate governance to operate effectively all aspects of Corporate America need to band together to ease skepticism.

Joseph P. Nacchio, who is the head of Qwest Communications, which is also being investigated by the Securities & Exchange Commission (SEC) states that “Corporate McCarthyism” is widespread because the backlash of questionable and fraudulent practices have been blown out of proportion.

Some topics in this essay:
Richard Finlay, SEC Chairman, Arthur Anderson, Microsoft Enron, Eugene Becker, Commission SEC, , Corporate America, Theodore Roosevelt, Harris Poll, accounting practices, corporate america, employees enron, corporate governance, investment banking, arthur anderson,