“The monitoring of managers by shareholders has disappeared from large listed groups “

Forum. Capitalism has profoundly changed in thirty years. The holding of shares in large listed companies has become the fact of a chain of managers, professionals located far enough away from the need for effective supervision of the company. Has shareholders less responsible are the leaders less “accountable” (accountable, we say in English).

Where to find a counterweight, making his balance to the company ? The pragmatic response, made out of convenience and not ideology, is to help another actor with an interest invested in the company, the employees.

Serious errors and repeated the management

In the 1970s, the buzzword was the ” shareholder value “, by which the shareholders were to regain their hold on the management of A heavy unit of governance was put in place, with a structure stronger of the board of directors. And then the “private equity” has appeared, with shareholder activists who, with the help of the sting of debt, have pushed managers to pay more attention to profitability.

That is more than forty years after ?

It has certainly added a call to a social responsibility of the company to the call to the profitability, more present than ever. With regard to monitoring, it has disappeared from large listed groups. Ever their leaders have had such latitude in the conduct of the business ; and their salaries have never been high. The recruitment is done in a narrow circle of super-managers of international.

The rules of governance so wisely put in place will not prevent the chief executive officer of Persimmon Plc, a british group, to collect $ 107 million pounds (121 million euros) in June 2018, despite poor performance. Carillion Plc, the uk has also been able to increase its dividend just a few months before being put in default, then that leaves a hole of $ 900 million…

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