Corporate governance across the Atlantic.

, , ,

Those of you who enjoyed the corporate governance parts of ACCA and CIMA may be interested – or excited, or irritated, depending on your point of view! – to know that the US Congress is considering legislation requiring the roles of the Chairman and the Chief Executive Officer to be split between two people.

This is big stuff. Why, you must be thinking, that is precisely the recommendation (read: requirement, hint, hint) of the Combined Code in the UK, and this feature distinguished it from the American Sarbanes Oxley law, which never mentioned such a split.

The reason is cultural: the Americans have always believed that one guy has to be in charge of a company, whether his name is Jack Welsh (General Electric) or, in an earlier age, Harold Geneen (of ATT).

In his book, “The Age of Turbulence” Alan Greenspan endorses this “John Wayne” approach to management. One guy in charge is the way to go. And now, after all the controversy on corporate mismanagement, bailouts and excessive executive remuneration, Congress is looking at … requiring the separation of the Chairman and CEO roles at US companies.

Watch this space…

(Un) Happy Christmas Mr Orangutan
Advertising can have a dramatic impact on what people buy and in countries which celebrate Christmas, one of the busiest buying seasons is upon us.[..]
Legal issues for the Big 4
If you ask a person in the street the question “What do the Big 4 do?”, the chances are that you’ll either get a funny[..]
Don’t sweat your exams
Most people enjoy it when the weather gets warmer. Sunny weather often makes people happier but some recent research indicates that a heatwave may not[..]
#problemswithreturns
It’s common knowledge that high street shops are struggling. A number of household names have gone (or are going!) out of business and one of[..]
Step on it...
You probably haven’t heard of Klaus Maertens but I reckon that most of you will have seen what he started. Klaus was a German soldier[..]