ABSTRACT
Corporate governance is a response of business to public and political criticism resulting from over-genrous remuneration packages awarded to company directors. This chapter enables students to embrace the issue of whether those who have had senior managerial responsibilities delegated to them run the company for the benefit of shareholders or for themselves. The Greenbury Committee was a response to public and investor concern regarding inflated pay increases awarded to themselves by directors of privatized utilities. The remit of the Committee was to review the process for paying directors and to make recommendations for improvements. The Hampel Committee on Corporate Governance was established in November 1995 to review the recommendations made by the Cadbury and Greenbury Committees and whether on implication they had proved helpful. While Hampel investigated a number of avenues for corporate governance improvement, the report produced takes a non-interventionist position in that the Committee was reluctant to move the debate of corporate governance too far.
