"A call for a culture of values, not just rules - from the corner office to the boardroom". From the Enron scandal in 2001 to the uproar over NYSE Chairman Dick Grasso?s pay package in the fall of 2003, markets have been roiled and confidence shaken by portraits of corporate greed. From Paris, in this exclusive for Policy Options, OECD Secretary-General Don Johnston considers means of improving corporate governance among his 30 member countries, notably in North America and the European Union (EU). Executive compensation is the tail of the dog, not the dog, he reminds us, adding that improvements lie beyond legislation and regulation, and even beyond eliminating egregious conflicts of interest and bolstering the independence of outside directors. At the end of the day, there is no substitute for a culture of values, nor for professional and ethical management of corporations.
By IRPP, Canada.