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	<title>IGOPPGovernance of SMEs &#8211; IGOPP</title>
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		<title>The Long-Term Survival of Family Business</title>
		<link>https://igopp.org/en/the-long-term-survival-of-family-business/</link>
		<comments>https://igopp.org/en/the-long-term-survival-of-family-business/#respond</comments>
		<pubDate>Mon, 30 Apr 2018 14:02:33 +0000</pubDate>
		<dc:creator><![CDATA[IGOPP Site web]]></dc:creator>
				<category><![CDATA[IGOPP in the Medias]]></category>
		<category><![CDATA[IGOPP in the medias]]></category>
		<category><![CDATA[Governance of SMEs]]></category>
		<category><![CDATA[Shareholders]]></category>
		<category><![CDATA[Value-creating governance]]></category>

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		<description><![CDATA[Introduction The Clarkson Centre for Board Effectiveness (CCBE) at the Rotman School of Management has a mission to study corporate governance and provide practical insights for companies about what good governance means. For more than a decade, we, like many of our peers, embraced the widely-held and publicly-listed model as the paradigm of good governance. [&#8230;]]]></description>
		<content><![CDATA[Introduction

The Clarkson Centre for Board Effectiveness (CCBE) at the Rotman School of Management has a mission to study corporate governance and provide practical insights for companies about what good governance means. For more than a decade, we, like many of our peers, embraced the widely-held and publicly-listed model as the paradigm of good governance. Every new crisis in the 1990s and early 2000s seemed to reinforce the importance of director and committee independence, shareholder democracy and an ever-increasing burden of disclosure to the public. To be sure, most of the recent evolutions in good governance have had a net beneficial effect for most companies. For example, the separation of the Chair and CEO roles is related to the adoption of other effective governance behaviours (Spizzirri, 2014). Our Board Shareholder Confidence Index board ratings (BSCI) have also tracked a steady increase in adoption of valuable practices such as board evaluations over the past 17 years.

[ ... ]

Our interest in the governance of family enterprises is further driven by the fact that most formal studies of family businesses focus on identifying and managing their unique risks – succession planning, protecting the founder’s vision, managing internal conflicts – but not their strengths. This has led, for example, to the development of tools such as the “Three Circle Model” (Davis, 2018). However, since family businesses generate more wealth for shareholders over time, perhaps claims about the outsize risk of family control are somewhat exaggerated.

Purpose

The life cycle of every company is entirely unique from founding to growth, from growth to prosperity and from prosperity to, in nearly all cases, death. Because each company’s experience is so varied and nuanced, there is no perfect dataset with which to study precisely what causes some companies to thrive and others to falter. Our previous work on family businesses, however, emphasizes their potential for long-term value creation. Meanwhile, influential thinkers and investors have sounded the alarm on short-termism in capital markets, arguing that it had a primary role in the Great Recession, and potentially poses a threat to capitalism as a whole (Barton, 2011). (1)

(1) Yvan Allaire explains that “corporate short-termism is the conscious decision (under external pressures or not) by management/boards to take actions that will bring benefits in the immediate future, knowing full well that these actions may prove eventually detrimental to the welfare of the company.” (Allaire, 2014)

Read more [1]

[1] http://www.rotman.utoronto.ca/-/media/Files/Programs-and-Areas/Institutes/Clarkson/Reports/The-Long-Term-Survival-of-Family-Business-FINAL.pdf?la=en]]></content>
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		<title>FP Letters to the Editor: Small firms need options as incentives</title>
		<link>https://igopp.org/en/fp-letters-to-the-editor-small-firms-need-options-as-incentives-2/</link>
		<comments>https://igopp.org/en/fp-letters-to-the-editor-small-firms-need-options-as-incentives-2/#respond</comments>
		<pubDate>Thu, 24 May 2012 18:24:13 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[IGOPP in the Medias]]></category>
		<category><![CDATA[IGOPP in the medias]]></category>
		<category><![CDATA[Executive compensation]]></category>
		<category><![CDATA[Governance of SMEs]]></category>

		<guid isPermaLink="false">http://aimta712.org/?p=2963</guid>
		<description><![CDATA[&#8220;Re: “Stock Options Under Attack,” Barbara Shecter, May 23 Rewarding executives with stock options may be a mistake in some circles, as claimed by the Institute for the Governance of Private and Public Organizations, but they are essential tools to attract and retain skilled management in many small and medium-sized enterprises (SMEs). Companies that have yet [&#8230;]]]></description>
		<content><![CDATA["Re: “Stock Options Under Attack,” Barbara Shecter, May 23

Rewarding executives with stock options may be a mistake in some circles, as claimed by the Institute for the Governance of Private and Public Organizations, but they are essential tools to attract and retain skilled management in many small and medium-sized enterprises (SMEs).

Companies that have yet to generate enough profit to compete for top talent with cash remuneration can provide incentives for employees at all levels through stock options. Concerns about short-term horizons and decisions driven by the immediate expected impact on the company’s share price can be mitigated by the judicious use of vesting and hold periods.

There are many issues surrounding executive compensation and overuse of stock options is just one of them. Eliminating them altogether won’t resolve the fundamental problems cited in the article with respect to “social trust, loyalty and reciprocity,” but it will make it much more difficult for SMEs to create sufficient incentives for senior executives or managers to join companies that have yet to realize their full potential.

Robert Cook, president, CNSX ­Markets, Toronto" ... Read more [1]

[1] http://business.financialpost.com/opinion/fp-letters-to-the-editor-small-firms-need-options-as-incentives/wcm/37e1d237-9fdc-4542-9b08-9b6c0d287390]]></content>
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		<slash:comments>0</slash:comments>
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		<title>Report by the Working Group on SMEs Governance</title>
		<link>https://igopp.org/en/report-by-the-working-group-on-smes-governance/</link>
		<comments>https://igopp.org/en/report-by-the-working-group-on-smes-governance/#respond</comments>
		<pubDate>Tue, 27 May 2008 13:52:04 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[Press Releases]]></category>
		<category><![CDATA[Governance of SMEs]]></category>
		<category><![CDATA[Private governance]]></category>

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		<description><![CDATA[The Group of experts proposes six concrete measures for improving the SMEs Governance. A Working Group of 18 prominent members of the business community issues a set of proposals promoting flexible governance adapted to the needs of Quebec’s small and medium-sized businesses and entrepreneurs. &#160;]]></description>
		<content><![CDATA[The Group of experts proposes six concrete measures for improving the SMEs Governance.

A Working Group of 18 prominent members of the business community issues a set of proposals promoting flexible governance adapted to the needs of Quebec’s small and medium-sized businesses and entrepreneurs.

&#160;
]]></content>
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		<item>
		<title>Small and medium-sized businesses Governance</title>
		<link>https://igopp.org/en/small-and-medium-sized-businesses-governance/</link>
		<comments>https://igopp.org/en/small-and-medium-sized-businesses-governance/#respond</comments>
		<pubDate>Tue, 27 May 2008 13:46:08 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[Working Groups]]></category>
		<category><![CDATA[Governance of SMEs]]></category>
		<category><![CDATA[Private governance]]></category>

		<guid isPermaLink="false">http://aimta712.org/?p=1626</guid>
		<description><![CDATA[A Working Group of 18 prominent members of the business community issues a set of proposals promoting flexible governance adapted to the needs of Quebec’s small and medium-sized businesses and entrepreneurs. At a time when small and medium-sized businesses (SMBs) are facing bigger and bigger challenges, their owners and managers need to be able to [&#8230;]]]></description>
		<content><![CDATA[A Working Group of 18 prominent members of the business community issues a set of proposals promoting flexible governance adapted to the needs of Quebec’s small and medium-sized businesses and entrepreneurs.

At a time when small and medium-sized businesses (SMBs) are facing bigger and bigger challenges, their owners and managers need to be able to turn to an advisory board or board of directors to obtain guidance and insight and to maximize their business development efforts. But governance at this level needs to be adapted specifically to SMBs to avoid weighing them down and unduly complicating their decision-making processes.

This, in a nutshell, is the main recommendation of the Working Group on the Governance of Small and Medium-Sized Businesses, created in December 2007 by the Institute for Governance of Private and Public Organizations (IGOPP). The Group is composed of 18 authorities in the support and growth of Quebec’s SMBs (see attached list of members). Together, they have come up with a series of concrete measures for improving governance among SMBs, especially non-listed companies that are not subject to regulatory requirements pertaining to governance.

In a report made public today, the Working Group, chaired by former Quebec finance minister Michel Audet, maintains that the reason so few SMBs are actively engaged in corporate governance is because existing measures are poorly adapted to their realities, there is a lack of information and there are no clear links between governance and the concrete needs of entrepreneurs.

Mr. Audet stated, “Feedback from SMB owners and managers who have worked with an advisory board or board of directors proves that the presence of external expert advisors or directors can represent an invaluable contribution.”

“Directors who have no financial or vested interest in a company can contribute to its long-term prosperity and growth, work toward its sustainability and provide advice to executives as they face numerous management challenges,” he added.

The Working Group came to the conclusion that one of the major roadblocks for introducing governance measures within SMBs is the lack of information on how access to independent advisors can benefit entrepreneurs. There is also a significant need for training programs adapted to the needs of SMB directors and officers.

Yvan Allaire, the chair of the board of directors of the IGOPP, applauded the quality of the report and the relevance of the six recommendations it contains. “The Institute will take action this fall by offering a new seminar adapted specifically to the particularities of SMBs that goes beyond simply replicating the controls associated with fiduciary governance.”

“Quebec companies have achieved their competitive edge through the extensive experience and skills they have developed from the 1960s onward. Our SMBs – the major players of tomorrow – can tap into this to support their management and decision-making needs,” Mr. Allaire said. “We have to find ways of matching up this wealth of expertise with the dynamic spirit of today’s entrepreneurs so that our entire society can benefit.”

The members of the Working Group have agreed that a concrete action plan is required to promote improved governance practices among Quebec’s SMBs. They therefore invite all those involved in this sector, particularly institutional venture capital investors which have a decisive influence over the governance structures in place in SMBs, to play a part in this process.

The Group encourages SMB investors and lenders to develop a set of best practices with respect to governance to be applied by the companies with which they join forces.

With the support of government ministries and other organizations associated with economic development, governments can promote better governance practices at the SMB level by offering incentives rather than imposing restrictions.

After establishing an inventory of the available tools, the Working Group will bring together organizations working with SMBs to coordinate and align their contributions and develop a concrete action plan. This plan will be unveiled in fall 2008 at a governance conference organized by the IGOPP and other partners.
]]></content>
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