05 Oct. 2010 | Comments (0)
- The board’s fundamental objective is to build long-term sustainable growth in shareholder value, and policies that encourage excessive risk-taking for the sake of short-term stock price increases are inconsistent with sound corporate governance.
- Corporate management has a critical role in corporate governance, as management has the primary responsibility for creating an environment in which a culture of performance with integrity can flourish.
- While independence is an important attribute for board members, the NYSE’s Listing Standards do not limit a board to just one non-independent director, and boards should seek an appropriate balance between independent and non-independent directors to ensure a proper mix of expertise, diversity and knowledge.
- While legislation and agency rule-making are important to establish the basic tenets of corporate governance, the commission believes that over-reliance on legislation and agency rule-making may not be in the best interests of all parties involved. Instead, the commission believes market-based governance solutions should be used whenever possible.