THE CRISIS IN CORPORATE GOVERNANCE
How to Fix Corporate Governance
Excessive pay, corrupt analysts, auditing games: It all adds up to capitalism's biggest crisis since the trustbuster era
Executive Pay
As the market cratered, executives went right on raking in the dough--as nearly 200 companies swapped or repriced their stock options
The Board
A ban on stock sales by directors for the duration of their terms would encourage them to blow the whistle on management when necessary
Accounting
"When the SEC and the Justice Dept. get their act together and start sending some CFOs and CEOs to jail, you'll see a real wake-up call"
Analysts
Most stock-rating terms are part of an elaborate web of euphemisms. "Neutral," for example, means "dump this loser and run for your life"
Regulators
More transparency in decision-making could help restore credibility at an agency like the SEC
Leadership
In the future, a CEO must set the company's moral tone--by being forthright, for starters, and by taking responsibility for any shortcomings
The Corporate Cleanup Goes Global
But not all reforms will follow the U.S. model
If Only CEO Meant Chief Ethical Officer
Greed, hypercompetitiveness, isolation, and more have pushed too many top execs to cross the line without fear of consequences
The Dirt a Bull Market Leaves Behind
Boom periods and ethical lapses tend to go hand-in-hand. Why? Because raging prosperity breeds an "anything goes" attitude
Where Can Execs Learn Ethics?
Not necessarily in B-school, where too many focus too little on doing the right thing -- despite the rash of corporate scandals
For B-Schoolers, Jailhouse Shock
A University of Maryland ethics course brings senior execs face-to-face with inmates doing time for white-collar crime
Is Education the Answer on Ethics?
Our recent article on where business morality fits in B-school curriculums drew a wide variety of responses, sampled here
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Scandals in Corporate America
In Washington, on Wall Street, in Corporate America: It's time to just do it!
(Special Report, 7/22/02)
Commentary: When Directors Join CEOs at the Trough
Let's eliminate the conflicts that enmesh corporate boards (Management, 6/17/02)
Restoring Trust in Corporate America
Business must lead the way to real reform (Cover Story, 6/24/02)
Paul Volcker on the Crisis of Faith
"Corporate...attitudes got corrupted by the mentality in the markets in the 1990s," the former Fed chief says (Daily Briefing, 6/14/02)
One Way to End the Analyst Scandals
The Street could regain credibility by simply declining to issue stock
ratings and price targets (Daily Briefing, 4/25/02)
Misreading the Enron Scandal
The energy trader's failure shouldn't be an excuse for Japan to eschew
U.S.-style corporate-governance practices
(Daily Briefing, 4/24/02)
Executive Pay
Many CEOs had a terrible year--but were still left with a mountain of
wealth (Special Report, 4/15/02)
The Reluctant Reformer
Will SEC Chairman Harvey Pitt crack down on corporate abuses?
(Cover Story, 3/25/02)
The Betrayed Investor
Americans bought into the idea that stocks could only make them richer.
Then the market bubble burst -- and then came Enron
(Cover Story, 1/23/02)
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Copyright 2002 , by The McGraw-Hill Companies Inc. All rights reserved.
