September 22, 2008 at 14:37 PM EDT
Poor Corporate Governance Highlights Risk of Bank Failures
Poor corporate governance ratings are highly correlated with high risk among financial institutions, according to Audit Integrity, which provides such ratings. For Corporate Governance metrics, “high Executive Compensation is prevalent for the riskiest financial institutions,” Audit Integrity says. “A substantial number of financial institutions have been flagged for high Incentive Compensation (both CEOs/CFOs and Other Officers), [...]
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