Thoughts from the City

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Are CEOs heeding internal auditors?

A boss's ignorance of wrongdoing remains a handy excuse, unfortunately

The tenth anniversary of one of the biggest fraud scandals in corporate history passed last weekend without fanfare. Yet vital lessons are still not being learned.Collapsed US telecoms giant WorldCom filed for bankruptcy on 21 July 2002 after a fraud...

Tags: barclays bob diamond, excuses, fraud scandals, internal auditors, management, news corp's rupert murdoch, worldcom

Are non-execs failing to do their job?

If non-executives and chairmen were doing their jobs properly, perhaps the Libor scandal wouldn’t have occurred

Should regulators be able to bring arbitrary pressure to bear on the boards of private companies?If you listen to Andrew Tyrie, chairman of the House of Commons treasury select committee, then the answer is a resounding no.Tyrie’s committee has been...

Tags: barclays, chairmen, governance, libor, mervyn king, non-executive directors

The fight for top quality non-execs

New skills such as understanding risk, finance and IT are now needed

Non-executive directors are now more important than ever. Companies and investors are under pressure to improve their stewardship of business amid widespread criticism of corporate excesses.Britain’s ‘shareholder spring’ clearly demonstrated that activism is on the increase, with a correlating rise...

Tags: governance, increased responsibilities, investor activism, non-executive directors, pay, stewardship

Out of harm's way

Let's return the traditional high street bank business to its boring but reliable best

When investing in bank shares is only for the brave, something has gone dreadfully wrong.So said business secretary Vince Cable in a speech to the Association of British Insurers chairman’s dinner just days after the revelation that Barclays - and...

Tags: banking, barclays, business secretary vince cable, csr, management, the city

So much hot air

Environmental disasters like BP’s Gulf of Mexico oil spill have thrust green issues onto the front pages

What happens when the corporate world collides with the environment was a hot topic at the United Nations’ Rio+20 summit last week, coming two decades after the Earth Summit in the same Brazilian city.Ahead of the meeting big business was...

Tags: csr reporting, earth summit, leadership, rio summit, sustainability report, united nations

Above board?

There is a lot more wrong in the leadership of UK companies than bumper pay packets

In the week when a new report found the total pay and bonuses package among FTSE 100 chief executives climbed by 10 percent last year I was captivated by a book on leadership in the Royal Navy.How can the two...

Tags: fred goodwin, ftse 100 pay packages, management, queen, royal navy

Oh to leave a better banking legacy

We owe it to the next generation to clean up the mess that was made of the banking system

The future strength and stability of Europe’s banking system is a goal being targeted by all interested parties and political shades, both here in Britain and across the continent. Exactly how we get there is the trillion dollar question and...

Tags: banking, ec commissioner michel barnier, financial conduct authority, financial services authority, financial services reform, house of lords, leadership, lloyds banking group, prudential regulation authority

A glimmer of light

Amid the darkness, it’s heartening to hear confidence is rising among small and mid-cap quoted companies

Amid all the recent doom and gloom a rare bright spot has emerged: small and mid-cap quoted companies are optimistic about the future.Last week the confirmation that Britain is stuck in the first double-dip recession since the 1970s came as...

Tags: confidence, double dip, finance, gdp, leadership, quoted companies alliance

A 'bonfire of regulations'

Businesses today are affected by legislation from outside the UK

Talk to any business these days and the issue of red tape is sure to crop up in conversation sooner rather than later. Companies report being weighed down by the burden of complying with a multitude of laws many of...

Tags: bribery, company law, david cameron, dodd-frank, employment, leadership, red tap, sarbanes-oxley, solvency ii, taxation, venture capitalist adrian beecroft

A loss for all

The entire bonus pool for 2012/13 could be less than last year’s tax take at just £2.2 billion

The focus on fat cat pay in recent weeks has rightly fallen on to boardrooms. Some of Britain’s biggest companies have found themselves embarrassed after investors big and small refused to support gold-plated remuneration packages. Several chief executives including Sly...

Tags: andrew moss, aviva, bankers bashing, city jobs loss, management, shareholder spring, sly bailey, tax take