Definition
Corporate governance encompasses the rules, practices, and processes by which a company is directed and controlled. Key elements include board composition, executive compensation, shareholder rights, and audit practices. Strong governance protects shareholder interests and reduces risks of fraud or mismanagement.
Example
Good governance indicators include independent board members, separation of CEO/Chair roles, and transparent executive compensation.
FAQ
What is Corporate Governance?
The system of rules and practices directing and controlling a company.
Why is Corporate Governance important?
Corporate Governance helps investors evaluate ESG and make more informed decisions.