“Companies Should Pay More Attention to Forming Their Boards”
In an article in the Nov. 10 issue of Gazeta Mercantil (Brazil), Booz & Company Partner Paolo Pigorini (South America) said although creation of three differentiated levels for listings on the São Paulo Stock Exchange (Bovespa) has grown more secure for foreign investors, the model is in need of critical adaptations like the formation of boards of directors and the rights of minority stockholders. “Our perception indicates that many companies orient the creation of their governance on ‘immediatism,’” Pigorini said, referring to the findings of a study by Booz & Company. “The company will only manage to organize good governance when it gets to the stock exchange and sees the market as the beginning of possibilities to activate its strategic plans.” The Booz & Company study encompassed a group of 15 companies, some already listed and others preparing for future access to the equity market.