We hope that Morgan Stanley will show that reinvention begins at the top, and set an example for the company by quickly revising its board practices and considering an upgrade of the composition of its boardofdirectors to reflect best principles ofboardgovernance.
The most common criticism revolves around corporate governance: Tracking stock subsidiaries seldom have a separate boardofdirectors to look after shareholders' interests.
Matteo Tonello, Director of Corporate Governance for The Conference Board, wrote in July about two enforcement actions against independent directorsof two publicly traded companies by the S.E.
Kookmin Bank in South Korea tries to encourage such efforts by charging a lower rate of interest for borrowers that meet certain corporate-governance criteria, such as having independent boarddirectors.