Goldman board changes - are sidedeals acceptable?

Pressure by individual shareholders to effect changes in corporate governance may appear to be a good thing but it creates its own problem. The case of Goldman Sachs is a topical example. Agreeing to changes in board structure just to save the post of chairman for the CEO is not an arrangement that should point the way forward to improved corporate governance. Individual shareholders should communicate their wishes first of all to fellow shareholders and not try to get special deals from management - behind closed doors or openly. Changes to board structure should not be tailored to individual companies but should follow a general principle that is applied to all public companies. There is no point in fighting the governance war over and over again, without any reference to clear principles. This just leads to endless (and mostly futile) discussion and allows company managements to evade demands for decisive changes.
(28/03/2012)

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