It's a common assumption, in the US and abroad, that
Americans believe they have the best financial system in the world
and that it is the most open, the most progressive, and the best
model for others to follow. But consider this statement from an
American institutional investor. "You know, I really don't like the
Vorstand-style of governance favoured in parts of Europe," he told
Euromoney last month. "But maybe it does have some advantages over
our system." His beef is simple: "The US CEO has become more and
more the fox guarding the hen house," he explains. "And he is
enriching himself and his executives in the process. More and more
companies are being run for the benefit not of the shareholders but
of the people running the firm."
These are two crucial issues: the CEO has become the overly
dominant force on the board and his...
