Boards in Information Governance

When the markets go haywire, as they appear to be doing now, stock prices cease to provide useful signals about corporate value or the performance of the men and women in the C-suite.  This is a major problem for the agency-cost theory of corporate governance, which has given us the so-called “monitoring board.” In what is now the dominant theory of corporate governance, the monitoring board sits atop the corporation and safeguards the value-creating work of executives primarily by monitoring changes in the company’s stock price.  With its primary mandate of securing shareholder profit, the monitoring board exercises a limited … Read more