Forum Archive Index - July 2002

[Mike Hudson <mikehudson@clear.net.nz>]

I don't find it that laughable.

I believe that many of the current "acounting issues" that are surfacing in
the US have poor governance by the Boards of Directors as their roor cause.
In a situation where the directors' remuneration is dependant on the same
criteria as the management's i.e. profit on share options it is hardly
surprising that directors will turn a blind eye to the excesses of
executives. If it was up to me I would ban share options from being issued
to directors.

I would much rather see a board of strong disinterested directors acting in
the interests of all shareholders rather than a bunch of  lackeys in the
pockets of management or a cornerstone shareholder.

Interestingly this seems to be the pattern in the UK where many of the
directors of public companies do not own shares in their company.

Cheers
Mike H







----- Original Message -----
From: "Ben Dutton" <bendutton@sharechat.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, July 11, 2002 10:30 AM
Subject: [sharechat] Air NZ Board


> Is it just me or is this laughable to the extreme:
>
> "They may be doing their best to reinvigorate the national carrier, but
most
> of Air New Zealand's directors have yet to back their governance prowess
> with their money"
>
>
http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=2097005&;
>
thesection=business&thesubsection=transport&thesecondsubsection=aviation&the
> tickercode=AIR
>
> The chairman of the board does not own a single share of his company!  A
> vote of confidence?
>
> Ben Dutton
> (laughing but laughing sadly - disc. no Air NZ)
>
>
> --------------------------------------------------------------------------
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