"Significant strides" made in corporate governance: Moody’s

In a study of 169 U.S. and Canadian entities over the past year, rating agency Moody’s says great strides have been made towards better corporate governance.
Among the improvements, Moody’s finds greater commitment by directors for such functions as risk management, oversight and controls, with directors less likely to "rubber stamp" acquisitions or other large investments. "Once the backwaters of the board, audit committees are now often home to the most experienced and dedicated directors," the report notes. More attention is also being paid to recruiting independent board members with financial expertise.
Compensation for boards and executive teams have shifted from restricted stock to stock options, which the rater sees as a positive move for promoting focus on long-term growth and risk. However, executive compensation remains a concern for some companies who continue to link pay with near-term performance, and pay at excessively high levels, a trend which analysts say may point to "weak boards".
Other areas of continued concern are transparency and succession planning. While Moody’s finds governance policies are being better communicated, there is still room for improvement in this area, the report says. And the lack of clear succession plans or concerns about the ability to execute such plans surfaced in one-third of the companies reviewed.