Committee for Economic Development Issues Governance Report

The Committee for Economic Development has just issued a report containing a number of recommendations to improve corporate governance. The five keys to effective corporate governance are:

• A vigorous and autonomous audit committee;
• Recognition of the inherently judgmental aspects of financial information;
• Providing SOX a chance to work;
• Having an effective compensation committee that tames executive compensation; and
• Selection and appraisal of directors by an independent nominating committee.