How do we change the culture?

Posted by & filed under Accounting Careers, Corporate Governance.

Description: This past week a study revealed that only 5% of Canadian tech companies have been founded by females. A similar 5% have a female CEO with females representing only 13% of the executive team. Further, 53% of these tech companies had no female executives. About a month ago, the Canadian Security Administrators released a… Read more »

Gambling on governance at ALC

Posted by & filed under Auditing, Corporate Governance.

Description: Cooperation between governments is a good thing. And in Atlantic Canada, the four provinces have cooperated for years as shareholders in one gambling organization, the Atlantic Lottery Corporation (ALC). This week, however, an audit report issued by the four auditors general of the Atlantic provinces concluded that the four provinces need to do a… Read more »

Corporate governance at MEC

Posted by & filed under Corporate Governance.

Description:  Mountain Equipment Co-op (MEC) has responded to concern from its members and scrapped certain criteria it had proposed for its board members. Given its role as a major retailer, MEC wanted board members who had governance or management experience in large and complex organizations. But this upset MEC’s members who appealed to the principle… Read more »

Voting power

Posted by & filed under Auditing, Corporate Governance.

Description: The Canadian federal government is on its way to giving shareholders increased power to vote against a board director. Under the rules right now, voters can only withhold a vote for a nominee they are unhappy with. This means, theoretically, that a “bad” director could be elected with a single vote if all other… Read more »

Wells Fargo Woes

Posted by & filed under Auditing, Corporate Governance.

Description: Not too many people would  have wanted to be in the shoes of  Wells Fargo CEO John Stumpf last week as he faced a grilling from US politicians over his bank’s tactics.  Employees had been accused of opening customer accounts without their clients’ knowledge in an effort to meet sales targets. In cases, Stumpf conceded,… Read more »

MEC changes gears

Posted by & filed under Contemporary Business Issues, Corporate Governance, Corporate Social Responsibility.

Description: Mountain Equipment Co-op, better known perhaps by its signature letters MEC, is a much admired Canadian co-operative. Members can still join for simply putting down $5 for a share. But recently some members have been concerned that MEC seems to be shifting its governance profile to be more corporate like, meaning that some members… Read more »

Chip Wilson Exits

Posted by & filed under Corporate Governance, Ethics.

Description: This past week, Lululemon founder Chip Wilson left the board of the popular clothing retailer. Wilson has joined the a competitor clothing company founded by Shannon, his wife, and J.J., his son. This new company, Kit and Ace, appears set to compete with Lululemon in the high-end clothing market. Source: Globe and Mail.com Date: … Read more »

Modernizing shareholder governance

Posted by & filed under Auditing, Corporate Governance, Financial Reporting and Analysis.

Description: Last Thursday Canadian Securities Administrators labelled the shareholders’ voting system in Canada “antiquated and fragmented”. This “antiquated and fragmented” approach has lead to miscounts in votes by shareholders at corporate meetings, generating complaints that more votes are cast than the number of outstanding shares in the company. Handling of proxy votes appears to be… Read more »

Big banks busted

Posted by & filed under Advanced Accounting, Contemporary Business Issues, Corporate Governance, Corporate Social Responsibility.

Description: Following on the heels of the Libor scandal (in which banks were found out for manipulating short term interest rates), on Wednesday documents disclosed that six large banks were fined $4.3  billion (yes, that’s billion with a “B”) for manipulating the foreign exchange market. Additional fines and  civil suits could keep this nasty story… Read more »