Chapter 20: Corporate Governance and Stakeholder Management

In this section

• Board Structure and Committee Responsibilities
  An in-depth exploration of board composition, independence, and key committee responsibilities, offering practical insights for CFA Level II candidates on effective corporate governance oversight.
• Investor Activism and Proxy Contests
  Learn how activist investors drive strategic, governance, and financial changes through proxy contests and engagement, including tactics, defenses, and real-world examples.
• Corporate Accountability Mechanisms
  Explore the key pillars of corporate accountability, examining how companies answer to stakeholders through internal and external controls, whistleblower policies, and rigorous governance frameworks.
• ESG Considerations in Governance
  Explore how boards integrate ESG into strategic oversight, align executive leadership with sustainable goals, and employ strong governance practices to balance short-term performance with long-term stakeholder interests.
• Vignette: Governance Policy Assessment
  Explore board independence, conflicts of interest, ESG integration, and best practices for corporate governance through an illustrative vignette and actionable assessments.