Corporate Governance

[Name of the Author]



Corporate Governance

Introduction

Managing corporations is not an easy task. Moreover, there exist a number of managerial approaches and techniques that are selected and implemented by the firms on the basis of their needs and requirements. Some firms prefer to offer more attention and importance to the stake holders of the company during the decision making process of the organization. However, there are some approaches that prefers otherwise. For instance, commonly known as corporate governance, the managerial approach typically emphasizes on the outside investors of the firms, mainly the shareholders. In the companies that observe this approach, the top managers are known to be monitored through market-based penalties and rewards. Because of the advantages and benefits associated with the approach, many countries all over the globe follow the fundamentals of Corporate Governance, particularly UK. The paper aims to explore this approach through two well-known corporations operating in that region.

Discussion

The fundamental factor around which revolves the entire concept of Corporate Governance is the independence of the Shareholders. In fact, in order to incorporate a better managing system within a firm, it is essential that the board of directors or the shareholders and their roles and responsibilities are isolated from the management of the firm. The two companies that will be discussed in this paper also follow this basic working principle of the corporate governance.

These two companies include Deutsche Bank as an important firm in the banking sector and Marks & Spencer, a well known revenue-generating organization in the retail industry. Al though, the method of governance of the two corporations may differ to some extent from one another. However, this cannot be denied that this governance approach has benefited both the companies in several ways. The approaches and the techniques adapted by the two firms are compared below.

Basic Structure

The board of directors for Marks & Spencer has a total of 15 members where as the management committee consists of 18 members. On the other hand, the corporate governance structure implemented in the Deutsche Bank consists of a Supervisory Board with 20 members in it. Moreover, the group executive committee has 18 members and the management board is made up of 7 members. The facts and figures show that the difference in terms of number of members in the board of directors committee and the management committee is greater in Marks & Spencer as compared to the Deutsche Bank. However, it only makes more sense that a bank in terms of outside investments or investors will requires a greater emphasize on its shareholders for better and effective management and decision making as compared to a retailing firm.

Board of Members

The Supervisory Board in the Deutsche Bank plays perhaps the central role in the working, operation, guidance and assistance of the entire bank. The most significant responsibility of this supervisory board is to appoint the management board and then guide and supervise it in various different aspects of the business. Although, it is this committee ...