Kahoot Flash Flashcards
(21 cards)
What does “shared value” mean?
Long-term commitment to subcontractors.
Are shareholders more important than stakeholders?
No, because shareholders are stakeholders themselves.
What does “systemic conflict” mean?
Systemic conflict happens because of different interests among the stakeholders.
What do we call the American way of organizing its economy?
Liberal market economy.
The Anglo-Saxon law system is called “common law”. What is special about it?
The importance of precedents and court rulings.
Who is Otto von Gierke?
A German lawyer who influenced corporate governance thinking.
Is board impartiality important?
Yes, it is written into the law.
Does the board make the company’s strategy?
No, strategy formulation is a managerial responsibility.
Does the textbook think experience is the most important quality in a board?
No, there are evidence of lack of motivation in many boards.
Are CEOs usually replaced by outside candidates?
The norm is internal. They perform better.
Do CEOs earn less after the shareholder revolution since the 1980s?
They earn more as shareholders align with them.
What is Say-On-Pay?
Consultation with shareholders about executive remuneration.
Is the market for corporate control a positive factor?
It keeps American management on its toes in a good way.
What are “poison pills”?
New cheap shares sold to old owners to counter an acquisition. Diluting ownership interest of any new interests.
What are institutional investors’ take on maximizing shareholder value?
They are the main promoters of the idea.
Was gender equality on boards more common before?
No, that has never been common.
Why did Norway create a law in 2003 that demanded 40% of gender representation in boards?
Because of the equality act of 1978 and too few women in boards.
Now that Norway has gender equality in the boards: how has it affected the number of female CEOs?
No more women CEOs than before.
Is the ideal of “maximizing shareholder value” conquering the world?
To some degree, but the process of convergence has haltered.
What is an outsider-friendly system of corporate governance?
When minority shareholders are treated the same as large.
Was the American corporate governance system of the 1970s outsider friendly?
No, it was insider-oriented.
