The compensation committee should use the evaluation when considering the compensation of the chief executive officer. To summarize, corporate governance provides a vehicle for an independent, attentive board to monitor management's performance. It will differ from industry to industry and company to company. What is important is that companies define the structure by which the board will operate and determine the principles it will follow to fulfill the directors' fiduciary obligations to shareholders. Public company boards have received their wake-up call and can no longer operate as management's rubber stamping machine.
Corporate governance is here to stay.
The company's success or failure may depend on it. As the assistant corporate secretary of Century Pacific Financial Corporation and Bank of Hawaii, Hawaii's largest financial institution, Terry T. Sasamura, a member of the Hawaii Paralegal Association, works regularly with corporate governance at that financial institution.