The Hindu : Measures to improve corporate governance

Online edition of India's National Newspaper
Thursday, Jul 17, 2003

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Measures to improve corporate governance

By Our Special Correspondent

NEW DELHI JULY 16. Peter Graurer, Chairman, Bloomberg LP, today said that good corporate governance was of utmost importance and suggested several measures for better corporate governance and increased transparency.

Among the suggestions Mr. Graurer made were limiting of the number of directorships an individual could hold in different companies, differentiation in taxation for shorter and longer stake holding period in the case of institutional investors and making corporate governance part of credit ratings. While addressing a panel discussion organised by the Confederation of Indian Industries on `Corporate Governance' here, he said, "People must discharge their responsibility pragmatically and honestly. This is the only way to ensure good corporate governance".

Answering a question on whether remuneration and share price highs and lows should be disclosed regularly in the annual report, Mr. Graurer said such disclosures begin to hurt because more often than not executive remuneration is not benchmarked and added that "most U.S. executives in my opinion are paid much more than they are worth". He is of the view that independent directors should be completely independent of pulls and pressures of the group they are working for.

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