US and EU Move in Different Directions on Corporate Transparency

The administration is proposing to eliminate business regulations to accelerate economic growth. The Financial Choice Act of 2016 aims to dismantle the Dodd-Frank Act, which wrote into law new governance rules in reaction to the financial crisis of 2008. At the same time, Europe is moving toward more transparency, with more stringent corporate governance principles that focus on shareholders’ say on executive compensation, according to the Wall Street Journal. The European Parliament has just passed the Shareholders Rights Directive, giving shareholders a vote on remuneration policy. Watch for these opposite trends to play out through the US and EU economies in coming months to see how more or less transparency helps the bottom line grow or contract.

John Howell, Editorial Director

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