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Setting the rules of the game: corporate governance and the banking sector


As the financial crisis morphs into a sovereign debt crisis, the corporate governance of banks is back under the spotlight. Whose interests should bank boards be serving? And who should be monitoring what banks do? INSEAD Professor Jean Dermine responds.

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What's your CEO really worth? INSEAD's Corporate Governance Initiative creates a model

If there is a culprit behind the dismal state of corporate governance today, INSEAD Professor Ludo Van der Heyden blames Wall Street capitalism.

"Wall Street capitalism is 'unfair capitalism'", claims Van der Heyden, who is The Solvay Chaired Professor of Technological Innovation and Academic Director of INSEAD's new Corporate Governance Initiative.

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Lessons from Germany's banking crisis: taking a closer look at boardrooms

In the aftermath of the economic crisis many governments are calling for tighter banking regulations to keep such a debacle from ever happening again. But Harald Hau, Associate Professor of Finance at INSEAD, says better bank governance may actually be a more effective answer to the problem - an insight which emerges from taking a closer look at the German experience. 

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Corporate models for corporate governance: Johnson & Johnson Trust 
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Johnson & Johnson, the New Jersey-based, publicly-listed manufacturer of healthcare products, is the world's largest medical device company, the fourth largest biotech and eighth largest pharmaceutical company in the world.

Some seven billion dollars went into research last year ... and then there is the Johnson & Johnson Trust, set up in 2007 to fund partnerships and grassroots philanthropy to support the company's principles in the EMEA region (Europe, Middle East and Africa). Read more..



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How do you measure success at the top?
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Perhaps at no other time in history has CEO compensation come under such scrutiny. What makes these business leaders, who are more often than not men, worth so much money?

Three INSEAD professors have devised a metric to measure CEO performance; and out of that comes a list of the top 200 CEOs. Prepared by Professors Morten Hansen, Herminia Ibarra and Urs Peyer, the results were published recently in the Harvard Business Review and on the INSEAD Knowledge website. Read more..



The Lehman fallout: blame the bankers, not the banks

The banking industry, post-Lehman Brothers, is going to be quite a different one going forward, because the impact of the banking crisis was so profound that changes are inevitable.

"I think the subprime crisis is an inflexion point," says Sir Win Bischoff, chairman of Lloyds Banking Group. "I think it's the first time that there has really been a separation between the developed economies and the emerging markets or the developing economies. Yes, they've been hit also but their banking system funnily enough has not been as hard hit."  Read more..

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Measuring the effectiveness of corporate governance
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Trust is the foundation of sustainable development. As the world continues to get smaller, our mutual interdependence increases and we all need to be able to mobilise the resources and goodwill of others to achieve success. That can only be achieved through gaining their trust. Therefore, the ability to gain the trust of global financial markets and of all the stakeholders in the value chain is becoming the key to success.  Read more..

 
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Other articles

On the loss of legitimacy and contagion of scandals
Maximising shareholder value: an ethical responsibility?
Personal view: Welcome, 'Stateholder'
Who supervises the board? In Indonesia, that's the job of another board
In the world of banking, does size matter?
Reputational risk management: A key determinant of competitive performance
Rethinking what shareholder value means
In defence of hedge funds
Risk assessment: Keep it simple
 


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