Corporate Governance in America

Corporate Governance Corporate Governance ModelModel

in thein the

Shareholder Model

Evidences of Change in Employment Relations

Capital /Management /Labor –

Job Loss Rate/Pay ratio –

Notable Change in Recent Years

Induction

1990to

present

1980to1990

Before

1980

Three stages of US’s corporate governance

Shareholder ModelShareholder Model

Management

Labor

Capital • Stock or Corporate bond• Dispersed Ownership• Board of Directors• Lack of Supervision

• indifferent HR management• Harmful for long-term interest

More outsider directorsIncreasing institution investmentFinancial defends, employees’ pension protection ( S-O Act )

US corporate governance changes in recent yearsESOPs ( employment stability )Increasing employment training fee

After ENRON’s scandal

Here we focus on two aspects of change in employment relations:• Job loss rate• Average CEO to average worker pay ratio

13%15%

Siwen Song| Caoxi He| Hanxi Cui| Xiaowei Wang