Richard Steinberg Discusses "New Models for Broken Board Governance System"

I usually don't blog about other people's writing, but I found a recent article by Richard Steinberg interesting (Richard is a former PwC senior partner who led the firm's work on the COSO internal control framework, founded PwC's risk management and control consulting practice, and directed the global corporate governance practice).

Richard suggests and discusses a few alternate board models that are being considered as improvements on the current board governance structure. I join him in thinking something has to change, and not being certain how things will turn out.

http://www.complianceweek.com/article/5633

Unfortunately, you can only view the post if you are a subscriber to Compliance Week. For those without access, here are the three alternatives he discusses:

1. All major decisions are voted on by shareholders.

2. Every organization has two boards, one for value-add activities and the other for oversight.

3. A full-time board.

What do you think? Does the current board governance structure work effectively? How would you change board governance structures and processes?

Posted on Oct 20, 2009 by Norman Marks

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  1. The model mentioned above could be a bit similar to Germany system of corporate governance which has a two tier approach thus: the main board which is overall and the another one that over sees the operations of a firm. under this are board committees that detail their duties and responsibilities.

    May be more light is needed here to attract  more debates

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