HSBC's top three managers have all been with the bank for about 25 years, and the company flouted U.K. corporate governance rules, which call for a clear division between chief executive and chairman, by bumping Green up to chairman, from chief executive, after Sir John Bond retired in 2005.
The company also said Monday that it has agreed to corporate governance reforms including a whistleblower hotline and an annual review of the independence of current and prospective board members.
Its aim, to improve corporate governance, tighten the rules governing company accounts and clearly apportion responsibility to senior managers to certify public accounts, is laudable.
In response, the company says it has implemented corporate-governance reforms, and that it has recently begun looking for a replacement to take over from Mr Eisner when his contract runs out in 2006.
"We are confident that Bharti Airtel Ltd. and Mr. Mittal have always upheld and practised the highest standards of corporate governance in all aspects of the company's operations, including the acquisition of spectrum, " Singtel, which owns about one-third of Bharti, said in a written statement.
The Dreamliner mess "is a huge hit to the company, " says Richard Leblanc, who teaches law, corporate governance and ethics at York University's School of Administrative Studies in Toronto.
The move follows a warning from the SEC and the New York Attorney General Eliot Spitzer that the NYSE was expected to clean up its corporate governance and bring itself up to the standards of a publicly quoted company.
The National Association of Corporate Directors regularly reports on public company governance issues, standards, and procedures.
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Mr Icahn called the management's move - which was not put to a shareholder vote - "an example of poor corporate governance", and criticised the fact that only a third of the company's board is up for election by shareholders each year.
Like another crosstown oil and gas exploration company based in Oklahoma City, SandRidge Energy (SD) is exhibiting the same shareholder inimical corporate governance practices.
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News Corp demonstrates the importance of the role of the General Counsel in ensuring strong corporate governance and sound business practices from the top down, and when necessary, guiding the company through times of crisis.
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