Governance is a hot topic once aGain HOW DO REITS TACK UP?By Allen Kenney
A DECADE after the Enron and World- Comdebacles, “
corporategov-ernance” is on the tip of investors’ tongues once again.
Having witnessed the economic turmoil wrought by the
financial crisis over the course of the last two years, shareholders are asking for a closer look at companies’ best practices and
demanding greater transparency from executives and boards of
directors. Further complicating matters, companies have found
they’re often dealing with differing segments of investors with
disparate—and sometimes competing—objectives.
“The focus on corporate governance today is both much
broader and much deeper than ever before. The biggest difference from 10 years ago is that far less deference is given to the
role of the board as the overseer of management,” says James J.
Hanks, Jr., partner with law firm Venable LLP in Maryland,
where more than 80 percent of REITs registered with the
Martin Barraud/Getty iMaGes