Tips On Corporate Governance By Warren Buffett
The US billionaire, Warren Buffet gives tips on corporate governance. A corporate governance affects the way how a corporation (or company) is directed, administered or controlled.
Why Warren Buffett gives tips on corporate governance. I think it is also the way he pick and filter stocks for his investment in a share market.
During a recent seminar in Kuala Lumpur entitled Warren Buffett Corporate Governance: Building a World Class Board of Directors, Buffett explained some of the hallmarks of the Buffett model of ethical management:
- The board should have minimal compensation.
- Stock options should not be part of executive compensation.
- No professional indemnity insurance for directors and officers.
- Directors and officers are asked to serve for a lifetime.
- Transparency – treating shareholders like partners, not taking on debt, preferring to buy family-owned businesses, and being free to talk about anything.
Read more at TheStar.
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