Corporate governance changes relationships

The relationship between management and boards of directors at U.S. multinational companies has been changed dramatically through an array of corporate governance initiatives begun in response to corporate scandals, the Sarbanes-Oxley Act, and other requirements. According to the PricewaterhouseCoopers Management Barometer:

The relationship between management and boards of directors at U.S. multinational companies has been changed dramatically through an array of corporate governance initiatives begun in response to corporate scandals, the Sarbanes-Oxley Act, and other requirements. According to the PricewaterhouseCoopers Management Barometer:

  • 88% of senior executives report that directors at their company are expected to have more input on a variety of issues.

  • 73% say their board will be more vocal on risk identification and risk management.

  • 72% say their company has established a “whistleblower” complaint process, as required by Sarbanes-Oxley, even though this provision is not yet in effect.

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