Describe key principles of effective corporate governance

Assignment Help Corporate Finance
Reference no: EM13887373

Describe the five key principles of effective corporate governance articulated in the 2010 report of the NYSE.

Below is a summary of the NYSE corporate governance requirements of companies listed on this stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations.

a. Boards need to consist of a majority of independent directors.

b. Boards need to hold regular executive sessions of independent directors without management present.

c. Boards must have a nominating/corporate governance commit- tee composed entirely of independent directors.

d. The nominating/corporate governance committee must have a written charter that addresses the committee's purpose and responsibilities, and there must be an annual performance eval- uation of the committee.

e. Boards must have a compensation committee composed entirely of independent directors.

f. The compensation committee must have a written charter that addresses the committee's purpose and responsibilities, which must include (at a minimum) the responsibility to review and approve corporate goals relevant to CEO compensation, make recommendations to the Board about nonCEO compensation and incentive-based compensation plans, and produce a report on executive compensation; there must also be an annual performance evaluation of the committee.

g. Boards must have an audit committee with a minimum of three independent members.

h. The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.

i. Companies must adopt and disclose corporate governance guidelines addressing director qualification standards, director responsibilities, director access to management and independent advisors, director compensation, director continuing edu- cation, management succession, and an annual performance evaluation of the Board.

j. Companies must adopt and disclose a code of business conduct and ethics for directors, officers, and employees.

k. Foreign companies must disclose how their corporate governance practices differ from those followed by domestic companies

l. CEOs need to provide an annual certification of compliance with corporate governance standards.

m. Companies must have an internal audit function, whether housed internally or outsourced.

Reference no: EM13887373

Questions Cloud

Dramatist''s methods for portraying moral and ethical issues : 3. Going to the Theater. In the three plays you read (Bertolt Brecht, Luigi Pirandello, and Samuel Beckett), the subject matter had a moral and ethical content (though Beckett might have been talking about the complete lack thereof). What were each o..
Describe how necessity would breed innovation : Describe how necessity would breed innovation; also, highlight how events, like reform, war, economic, and progress may have directly impacted your profession.
Compute the amount of interest expense : Compute the amount of interest expense
Discuss what you liked about the diversity plan : For this assignment, you will choose a company and find their Diversity Plan. In 1-2 pages: Provide background on the company you have chosen and then summarize the Diversity Plan. In 1-2 paragraphs: Discuss what you liked about the Diversity Plan
Describe key principles of effective corporate governance : Describe the five key principles of effective corporate governance articulated in the 2010 report of the NYSE. Below is a summary of the NYSE corporate governance requirements of companies listed on this stock exchange.
Question regarding the larson-miller parameter : If the Larson-Miller parameter correctly correlates the data, a plot of data at constant stress (therefore constant P) of log (t) versus 1/T also would be a straight line.
Find the ratio of the depths below the surface : Find the ratio of the depths below the surface at which the two amplitudes have dropped to 1 / 20 of their surface values.
Determine equation type, nature of boundary curve : Consider each of the following situations in a qualitative way and determine the equation type, the nature of the boundary curve and the type of boundary conditions involved a conducting bar given an initial temperature distribution and then therma..

Reviews

Write a Review

 

Corporate Finance Questions & Answers

  Elk county telephone has paid the dividends shown in the

elk county telephone has paid the dividends shown in the following table over the past 6 years.year dividend per

  Problems1 dive pharmaceuticals has ebit of 485 million in

problems1 dive pharmaceuticals has ebit of 485 million in 2013. in addition viking has interest expenses of 190 million

  1 is garbage collection a public good 2 if it is a private

1. is garbage collection a public good? 2. if it is a private good and not a public good why is garbage collection so

  What is leveraged recapitalization

Define the three conditions that make up a perfect capital market, and then compare and contrast the effects of perfect capital markets and imperfect capital markets on value. Can they create or destroy value? Explain.

  Start a programme of stock repurchases

To reduce the company's cost of capital, the management of Company A should start a programme of stock repurchases financed through the issue of new debt.

  1 suppose that you have the following data on states of

1. suppose that you have the following data on states of nature and outcomes for three

  What equal amount must he save at the end

What equal amount must he save at the end of years 11 through 30 to meet this objective? The interest rate for the first 10 years will be 5 %. After that time, the interest rate is expected to be 7%.

  Suppose valuecos most recent free cash flow ie yesterdays

suppose valuecos most recent free cash flow i.e. yesterdays free cash flow was 110 million and is expected to grow at a

  How to prepare a report for the mayor and city council

Prepare a report for the mayor and city council on your proposed expenditure plan assessing the key course objectives including fund accounting and financial controls, control and management of public expenditures

  Cash flow estimation and risk analysis

What problem would arise if in projecting cash flows for a capital budgeting decision on a project interest expense was not excluded and Why are incremental cash flows the relevant cash flows for capital budgeting analysis? Why not just analyze th..

  Calculate the net present value and payback for each project

Calculate the net present value and payback for each project and state which project the company should accept and why.

  Write an introductory section for a budget manual entitled

The company you work for has asked you to write an introductory section to its budget manual. Write an introductory section for a budget manual entitled ‘The Reasons for Preparing Budgets'.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd