OECD Countries Agree New Corporate Governance Principles
In Paris today, the Organisation for Economic Cooperation and Development (OECD) announced that the governments of its member countries have approved a revised version of its Principles of Corporate Governance. The revision includes new recommendations for good practice in corporate behaviour, and the OECD says this is "with a view to rebuilding and maintaining public trust in companies and stock markets."
According to the release, these revised Principles respond to a number of issues that have undermined the confidence of investors in company management in recent years. Accordingly, they call on governments to ensure genuinely effective regulatory frameworks and on companies themselves to be truly accountable; advocate an increased awareness among institutional investors and an effective role for shareholders in executive compensation; and urge strengthened transparency and disclosure to counter conflicts of interest.
