The management
The quality of both
the CEO and his staff will depend on the quality
of the BoD.
- The CEO takes part in all
BoD monthly meetings but is not a Director.
- He gives the BoD full, detailed
and transparent information on the running
of the company's day-to-day business.
- Rule out of all contracts
"golden handshakes" amounting
to millions $.
- No severance allowance paid
in case of poor management.
Caution ! Pension
funds, often involved in companies' capitals,
do not like " stock options " because
this type of compensation implies short-term
actions while pension funds are based on long-term
action.
© ECOFINE.COM, Bernard
Jaquier, Professor in Economics & Finance,
Lausanne, Switzerland, 2018