Syndicate content

Private Sector Development

Independent Directors in Latin America, a time for change?

Oliver Orton's picture
Also available in: Español


Carl Fuerstenberg, one of the most prominent German bankers of his generation, famously said more than a century ago that shareholders are irrational and impertinent. They are irrational, he said, because they entrust their money to people they don’t control, and impertinent because they expect to receive dividends as a reward for their foolishness.

This dynamic lies at the very heart of the corporate governance challenges faced by many companies and is especially acute in Latin America.