The Companies We Want: A Conclusion

• Author: Allan C. Hutchinson
• Pages: 315-326

315



e Comnies W Wn:

 

Some look at things that are and a sk why. I dream of things that

never were and ask why not .

~ George Bernard Shaw

I M  Dominic D’Alessandro oered a stern message to the

shareholders of Manulife Financial Corp., Canada’s largest insur-

ance company. As its top executive, D’Alessandro warned that recent

changes to the regulator y climate are a sign that the corporate govern-

ance pendulum “may have swung too far.” Bemoaning the spiralling

costs and the heavy burden of increased regulation on public compa-

nies, he was particularly troubled that new reporting rules seemed to

build on a mistaken belief that executives are a greedy lot that cannot

be trusted to act in the best interests of their investors. He stated, “It is

now becoming fashionable to believe that corporate behav iour should

always be viewed with suspicion” and that “this is a very dangerous

premise upon which to develop a governance regime.” In particular,

D’Alessandro opined that, in doing so, “we run the risk of imposing

onerous and impractical restraints that will stie entrepreneurial ac-

tivity.” ese are strong and unsettling words, especially as they come

from one of Canada’s leading business executives. Yet they need to be