| Every time you look into a large corporation, you pretty | | | | and how corporate governance exist. |
| much look at the same few positions: CEO, CFO, | | | | Corporate governance is defined as "Relationship |
| CTO, CIO, Managing Director, Presidents, Vice | | | | between all the stakeholders in a company." The list of |
| Presidents, Founders, etc. It's getting increasingly difficult | | | | these stakeholders include shareholders directors, the |
| to keep track of all these positions, what they really do | | | | management team specified by the corporate charter, |
| and where do they stand in the corporate ladder. | | | | bylaws, formal policy and rule of law. Business |
| Should we be paying more attention to the CFO or the | | | | environmental factors has forced ownership and |
| CEO when we're making investment decisions? Or | | | | management to split into two different categories, to |
| should we look at the CIO (Chief Information Officer) | | | | the evolution of public ownership. |
| who would be releasing most of the internal data? | | | | Back in the 20th century, businesses are often |
| The Hierarchy Blues | | | | family-run businesses. Vineyards, breweries, steel |
| Often said than not, the management team and board | | | | manufacturers, vehicles, etc., who were once family |
| of directors have an ultimate goal - Maximize | | | | owned and run moved into expanding their size and |
| shareholder value. Theoretically, they manage | | | | make it publicly owned - Which could be a very |
| day-to-day operations while the board of directors | | | | lucrative venture. Today, many of these businesses |
| ensures that shareholders are adequately represented. | | | | are large international conglomerates trading publicly on |
| Practically, however, this board of directors is often | | | | one or more global exchanges. |
| made up of the management team itself, which is why | | | | |