25 August 2004

Share Price: A Factor of Corporate Governance?

Corporate Governance is good for the bottom line but even Google hasn't found this out...yet. Their recent coporate governance quotient is 0.2 out of 100.

But, as Ric Marshall, chief analyst for the Corporate Library, notes, it's not necessarily a bad thing. "There is this tendency to dumb things down by making all boards look the same,'' Marshall told the San Francisco Chronicle. "By doing something different and unconventional -- in terms of how the IPO has gone, the multiple share classes, the makeup of the board -- Google is creating something that is different and unusual. Good corporate governance is the creative interaction between directors on the board. What concerns me is the ethics of the people involved and their ability to be creative."

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