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And companies are likely to put more emphasis on having directors who are not afraid to challenge management, if necessary.
The board was also forced to act under intense time pressure and lacked the information needed to challenge management recommendations.
On Tuesday, shareholders were given their first chance to challenge management on a loss of 4.9 billion euros or $7.1 billion — and there was no more holding back.
This concept applies to other types of companies like General Motors, which, before its bankruptcy, suffered because its board was unwilling to challenge management.
"I've lost confidence in their ability to treat me like they're treating the big people," he said, adding that he was also disappointed by mutual fund boards, which are supposed to have some independent directors but only rarely challenge management.
G rale were given their first chance to challenge management on a loss of 4.9 billion euros ($7.1 billion) since a trader made unauthorized bets worth nearly 50 billion euros ($79 billion) for more than two years.
Similar(47)
It was bad versus good, irrationality against reason, an employee challenging management.
Some investors are challenging management in proxy votes, a practice unheard of a few years ago.
If the non-executive directors were doing their job of challenging management and assessing risks, it was impossible to tell from written records.
These insiders would typically own a minority of shares, but enough to prevent dispersed outside shareholders, to whom little corporate information was disclosed, from challenging management.
The importance of broad landscape scales and the difficulty to restore locally degraded sites challenges management.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com