Currently, there has been considerable public controversy over the level of remuneration for some executives and over the fees paid to board members. This has stimulated shareholder activism, and increasingly, as part of transparency in governance, the board of directors is being asked to declare the details of such remuneration and fees. Also, in situations where executives have left the company, boards also are being asked for severance package details.
- Do shareholders have a right to such information? If so, why? If not, why not?
- What principles of good governance apply in this situation?