Fifty international academics and leading corporate governance practitioners have come together for an annual lecture at IMD with the IMD Global Board Center.
The event was part of the European Corporate Governance Institute’s (ECGI) Annual Members’ Meeting in Lausanne which took place between 27 — 28 April. It cemented the strong collaboration between the Institute and the IMD Global Board Center, which supports board members by providing unique resources on current boardroom issues and the latest corporate governance trends.
The annual lecture, entitled “since you’re so rich, you must be really smart: talent and the finance wage premium”, was delivered at IMD by Professor Per Strömberg of the Stockholm School of Economics and the University of Chicago Graduate School of Business. Professor Strömberg’s lecture examined the hypothesis that the demand for skilled workers in finance has risen more than in other sectors, resulting in extraordinary increases in relative pay within the sector over the last few decades.
The event at IMD followed an informal dinner as part of the Institute’s Annual Members’ Meeting.
At the Dinner David Frick, Senior Vice President Nestlé S.A., Corporate Governance, Compliance and Corporate Services, addressed the attendees on whether there is a comparative disadvantage to being a publicly traded corporation.
Following the lecture, ECGI awarded two prizes for the best research papers from the previous year.
The Finance Series prize of €5,000, sponsored by Stanford Life Investments, was awarded to Professor Mariassunta Giannetti of the Stockholm School of Economics and Professor Mengxin Zhao of the University of Alberta, for their paper on board diversity and firm performance volatility.
The paper contributed to the view that diversity, while proven to be beneficial to corporations, also has the downside of leading to less coherent decision-making if board members do not share a common perspective.
The Law Series prize of €5,000, sponsored by law firm Allen & Overy LLP, was awarded to Professor Ronald J. Gilson of Columbia University and Stanford University for his paper, “From Corporate Law to Corporate Governance”, which highlights the evolution from corporate law to corporate governance.
The paper is a masterful review of 50 years of legal and financial scholarship on corporate governance. It builds on Professor Gilson’s own influential work in the area and provides a complete and thoughtful picture of what corporate governance is and why it matters to business today.
Speaking at the ceremony, Professor Marco Becht, Executive Director of ECGI said: “It has been another exciting year for the European Corporate Governance Institute, which is exemplified by the outstanding work of our research members, and the enthusiasm of our members to take part in this important annual event.
“We are looking forward to continuing to deliver leading research, to support evidenced-based policy making and institutional design around the globe.”
About The IMD Global Board Center:
Founded in 2010 by Professor Didier Cossin, the IMD Global Board Center’s core agenda is to support long-term organizational success through a strong board. The Center brings together world-class thought leadership and global best practices in a systematic way to help boards reach their full potential.
