Planck Foundation



The chairman of a Corporate Governance Code Counsel in Holland which has made a corporate governance model to which more and more international corporations that are operating in Holland applies to. The need for some kind of corporate governance came clear due to some excesses. The last CEO of Fokker sold the company to EADS, filled for bankruptcy of the company as DASA (now Airbus/EADS) didn't support the company and thereby removed a continental competitor for DASA by the Trojan Horse trick), and after this just went to a new job CEO by Daimler Benz (which was the main DASA shareholder) in Brazil. The last CEO of KLM sold the company to Air France for an amount that was in cash available in the company, so Air France got a huge and profitable company just for free. The last CEO of World Online did a similar deal with the cash loaded company World Online. The last CEO of ABN Amro (after years of strategically bad management and also a building up of an e 81 billion US mortgages related CDO asset) decided that the end of his regime also the end of the independence of the 9th largest bank of the world should be. All these CEOs just used their positions in strong companies just for their own benefit (as in: huge exit bonuses) as they where the owners and not the managers of the corporations they lead and showed no compassion at all for the corporations and the customers, employees and shareholders they were responsible for. Tabaksblat his corporate governance code was a response to these egoistic corporate governance excesses, where malfunctioning just hired-in CEOs walked away with bonuses 20 times their year wage while wrecking the companies they're supposed to care for. A more simple solution than a complex corporate governance code had been just a direct stop on any one time bonuses, switching to just life time bonuses. CEOs than will practice both short term and long term corporate policies and start to address issues like the effects of the Credit Crisis, the Energy Crisis and the Water Crisis, as they (similar to customers, employees, financiers, shareholders) have an interest by the long term health of the corporations they served.

Author: Gijs Graafland

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