There is a growing imperative to undertake proper reform of corporate arrangements. This imperative must have a shot in the arm after Insync Surveys chairman Nicholas Barnett said this:
“We have had a large period, and a long period of success, and success breeds … a feeling of entitlement, a little bit of complacency, and most shareholders would say we probably got a little bit out of step,” he said.
Amazingly it would seem that after a period of sustained public and political outrage, Australia’s board members concede they now agree that remuneration packages have become excessive. This was revealed from a poll of more than 600 directors. So now it’s time to strike while the iron is hot and begin implementing reforms; like improving transparency and accountability of the board to shareholders.
While there are numerous methods and theories about corporate board transparency and accountability, it’s worth exploring greater shareholder accountability. In my opinion there is a great deal to be explored in how shareholders elect board members.