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Principles of Corporate Governance
2012
 
 
Business Roundtable (BRT) is an association of chief executive officersof leading U.S. companies with over $6 trillion in annual revenues andmore than 14 million employees. BRT member companies comprisenearly a third of the total value of the U.S. stock market and investmore than $150 billion annually in research and development – nearlyhalf of all private U.S. R&D spending. Our companies pay $163 billionin dividends to shareholders and generate an estimated $420 billion insales for small and medium-sized businesses annually. BRT companiesgive nearly $9 billion a year in combined charitable contributions.
Copyright © 2012 by Business Roundtable
 
 
Table of Contents
 
Foreword and Introduction .............................................................................................................................1I. Key Corporate Actors.........................................................................................................................5II. The Roles of the Board of Directors and Management ......................................................................7The Board of Directors.......................................................................................................................7The CEO and Management..............................................................................................................10III. How the Board Performs Its Oversight Function..............................................................................13Board Composition ..........................................................................................................................13Board Leadership.............................................................................................................................15Board Organization..........................................................................................................................16Audit Committee..............................................................................................................................17Corporate Governance Committee...................................................................................................20Compensation Committee................................................................................................................23Board Operations.............................................................................................................................24Senior Management Development and Succession..........................................................................28Board and Committee Evaluation.....................................................................................................28IV. Relationships with Shareholders and Other Constituencies..............................................................30Shareholders and Investors..............................................................................................................30Employees .......................................................................................................................................31Communities
.................................................................................................................................32
Government.....................................................................................................................................32
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