Securities Commission Malaysia chairman urges boards to incentivise good corporate governance and prioritise long-term value over short-term profit-seeking.
Kuala Lumpur, Malaysia. Photo: Zhu Defeng, Shutterstock
The Securities Commission Malaysia (SC) chairman, Tan Sri Ranjit Ajit Singh, has urged corporate boards to set up incentive structures that compel board members to focus on long-term goals instead of short-term profit-seeking.
In a keynote address at the International Corporate Governance Network (ICGN) annual conference 2017, Singh said: “Boards are under greater scrutiny as there are concerns that market forces and other exogenous factors are causing short-term priorities to compromise long-term interests.”
Tan Sri Ranjit Ajit Singh. Photo: Securities Commission Malaysia
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
The Financial Reporting Council has launched a project to reshape corporate reporting in response to the "responsible business agenda" and the realisation that reports should be designed for a wider group of stakeholders.