Page 7 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
P. 7
Session Unit 10:
34. Corporate Governance and ESG: An Introduction
Board responsibilities, p.6
• Selecting senior management, setting their compensation and bonus structure,
evaluating their performance, and replacing them as needed.
• Setting the strategic direction for the company and making sure that management
implements the strategy approved by the board.
• Approving capital structure changes, significant acquisitions, and large investment
expenditures.
• Reviewing company performance and implementing any necessary corrective steps.
tanties
• Planning for continuity of management and the succession of the CEO and other
senior managers.
• Establishing, monitoring, and overseeing the firm’s internal controls and risk
management system.
• Ensuring the quality of the firm’s financial reporting and internal audit, as well as
oversight of the external auditors.
An audit committee of the Board is responsible for:
• Oversight of the financial reporting function and implementation of accounting policies.
• Effectiveness of the company’s internal controls and the internal audit function.
• Recommending an external auditor and its compensation.
• Proposing remedies based on their review of internal and external audits.
