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Effective Corporate Governance: from the perspective of New Zealand fund managers
Author(s) -
Chiu Peggy,
Monin John
Publication year - 2003
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00013
Subject(s) - corporate governance , remuneration , business , accounting , independence (probability theory) , portfolio , population , finance , statistics , demography , mathematics , sociology
Institutional investment in New Zealand public companies has important implications for corporate governance of those companies. This study investigates the corporate governance issues that are perceived as important by fund managers, and the extent to which they become involved in the governance aspect of their portfolio companies. 14 NZ fund managers from a total population of 20 were interviewed. The findings reveal that fund managers would like to see more independence in governance processes and structure: for example, the proportion of independent directors, the CEO's role and the selection of new directors. In terms of remuneration for executive directors, fund managers in Australia and New Zealand prefer performance‐based remuneration, but they admit that the formulation of appropriate schemes is complex. Two cases of intervention in the governance affairs of publicly listed companies attest to the active interest of fund managers.