I know that this is a little bit of a too specific question but what do u guys think is the one tier or the two tier board structure better?
I don't know much about two tier boards but I have the impression that German companies play fewer deceptive financal games than american companies. Americans also pay CEOs more without getting any better performance from their CEOs. The company that I have most closely followed, Calpine should be sold to a larger company with a better credit rating and the political clout to force regulated electric utilities to not freeze Calpine out of contracts. This seems so obvious to me but I don't know if the CEO cares about the stockholders interests. The CEO founded the company picked the board, is chairman off the board and contiually deals himself way too generous options in the money even though the stock price has fallen from $50 a share to $2 a share during the last five years. Would a two tier board stop a self dealing CEO?
Yes it would and thats why there is an interst for the two-tier board system in the world now. (Especially after Enron and Worldcom, Vivendi Universal).
