The traditional corporate governance model of shareholder primacy faces an extended period of transition, but exactly what comes next is unclear. Market actors - companies, trade associations, investors, legislators, and entities focused on environmental risk and social benefits - are debating the governance framework of stakeholder management – that is a framework that considers all of a company’s constituents: shareholders, employees, customers, suppliers, and surrounding communities.
That sentiment makes for good press, but the details have yet to be ironed out. How does a company set goals and measure progress? How does a company balance competing concerns? Would shareholders (with the power to elect the board) accept lower financial returns if it meant the company could increase wages or avoid layoffs, or pay for cleaner (but more expensive) energy?
The Center On Executive Compensation (COEC) supports a principles-based approach to disclosing data germane to a company’s risks and opportunities and developing effective corporate governance policies. At it’s best, corporate governance provides shareholders with the right and opportunity to hold boards accountable while also providing boards and executives with the authority to manage both the day-to-day operations and strategic planning.
Discover corporate governance news, including the latest on shareholder’s rights, board structures and policies, and emerging models such as Stakeholder Capitalism
Featured Insights
Explore Corporate Governance Resources
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Member Only
Governance in 2025: What to Watch
December 13, 2024 | News -
Former EEOC Chair Sets Stage for HR’s Future at Center’s Annual Meeting
November 22, 2024 | News -
Key Pay Issues to Watch in the Incoming Trump Administration
November 8, 2024 | News -
Member Only
10 Lookouts for Your Pay Equity Analysis
November 1, 2024 | News -
Member Only
Your 2025 Pay Equity Roadmap
November 1, 2024 | News -
Member Only
State of the States: Strategies for Compliance and Beyond
November 1, 2024 | News
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Balancing Purposeful Complexity & Greater Simplicity in Pay Design
January 29, 2024 | Analysis -
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A Multi-Stakeholder Approach to Assessing Risk and Incentives
June 10, 2022 | Analysis -
FTC Proposed Ban On Non-Complete Agreements - Center On Executive Compensation Comments
October 8, 2021 | Advocacy -
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Quick Survey Results: Executive Titling and Board Service
July 16, 2021 | Survey -
Member Only
Quick Survey Results: Pay Equity Practices
March 26, 2021 | Survey -
Member Only
SEC Proposed Rule Adds Human Capital Metrics Disclosures to Form 10-K
September 3, 2019 | Commentary