Ann Crotty
3 minute read
23 Jan 2021
7:03 am

New world calls for new skills

Ann Crotty

System of corporate governance is in need of change.

PricewaterhouseCoopers LLP's building stands in the financial district of Toronto, Ontario, Canada. Picture: Brent Lewin / Bloomberg via Getty Images

It’s difficult not to conclude from PwC’s latest report on non-executive directors, released every year in January, that the system of corporate governance in which the board and its various committees play an oversight role is broken. Perhaps it was foolish to assume an oversight system based on committees of ‘outsiders’ would be effective in directing, or even controlling, the individual flair of executives tasked with managing what are often large and complex organisations. Inevitably perhaps, much of this oversight responsibility has fallen to the remuneration committee. This was never intended but given that pay is a major determinant of...