As 2014 enters its final month and the coming year looms just around the corner, it’s a good time to take a look forward, as is the long-standing tradition of this column. Some years I’ve put forth a wish list for developments I’d like to see in the coming year, but this time I’d like to go out on a limb and make some predictions about what 2015 holds for corporate governance.
For context, it’s worth noting that many elements and underpinnings of the current governance model are being challenged both by investors and their advocates, governance pundits, academics, and others. A recent piece in the Harvard Law School Forum on Corporate Governance and Financial Regulation, for example, by John Wilcox, chairman of corporate governance advisory firm Soladi, raised such fundamental questions as: Should shareholders have more power or less? Should corporate governance be director-centric or shareholder-centric? Is chronic short-termism the fault of greedy shareholders, greedy CEOs, weak boards, or others? These are questions worth pondering, even if the answers are elusive.
