The corporate governance revolution is one of the key business trends of recent years. In the wake of the financial scandals and pressure from institutional investors and regulatory bodies, public companies had to overhaul their governance practices. While there are governance practices that companies should adopt, many futile practices have been imposed. All these changes have led to better processes for selecting, developing and overseeing senior management. At the same time, the new rules have entangled boards in red tape and promoted more conservative management. The second factor is the pressure on management to play it safe and refer any concerns to the board. The new philosophy underscores the fact that a director's work is demanding. But with the overemphasis on compliance with detailed rules, relevance is often overlooked. The confusion between requirements and relevance undermines corporate performance.

Financial performance
Compliance
Regulation