Speaking before approximately 3,000 corporate finance and treasury professionals attending the conference, Reed elaborated on the changes underway in boardrooms across corporate America and the loud call for reform from American investors that prompted them. Reed underlined the growing independence, engagement and intrusiveness that will increasingly characterize directors as they undertake the hard work necessary to effect a shift in the balance of decision making from the executive suite to the corporate boardroom.
"Given the importance of the NYSE as the center and symbol of the American capital markets, John Reed's work at reforming the constitution and governance structure of the NYSE is a positive example for corporate America," said Jim Kaitz, president and CEO of AFP. "The new constitution that Mr. Reed will announce tomorrow, as well as a set of new proposed directors, is a sign that the NYSE is taking the lead in ensuring strong, ethical and transparent governance at the world's most important marketplace."
In his assessment of the causes of the recent spate of corporate
malfeasance, Reed cited the historical rise to prominence of the charismatic
CEO, the spike in executive compensation, and the often-abused notion of
shareholder value. Reed also urged the attending finance professionals to heed the lessons learned from the recent highly publicized corporate incidents and be prepared to work more closely with their boards in the future to ensure strengthened governance in their own organizations.
