The Current State of Corporate Governance in the Global Marketplace

On December 6, 2005, PIFS, Standard & Poor’s, and BusinessWeek co-hosted a panel discussion entitled “Mandating Integrity and Transparency: The Current State of Corporate Governance in the Global Marketplace.” Markets, ultimately, revolve around investor trust, a fragile commodity that, in recent years, has been sorely tested following a wave of well-publicized corporate scandals in North America, Europe, and Asia. A panel of experts engaged in a Socratic discussion and considered the following questions:

• How well have corresponding regulatory and legislative attempts at raising standards for corporate governance succeeded in restoring investor confidence, and at what cost?

• Can requirements be applied unilaterally across geographic and cultural boundaries?

• What is the proper role for independent directors? For outside auditors? For shareholder activism?

The panel considered the above questions in light of their applicability to the world’s three major securities markets and one of the largest developing markets, China.

Panelists included:

• Paul S. Atkins, Commissioner, U.S. Securities and Exchange Commission

• Dr. Rolf-E. Breuer, Chairman, Deutsche Bank Supervisory Board

• John A. Byrne, Executive Editor, BusinessWeek

• George S. Dallas, Managing Director and Global Practice Leader, Standard & Poor’s

• Pierre Delsaux, Acting Director for Free Movement of Capital, Company Law and Corporate Governance, European Commission

• Guido Ferrarini, Professor of Business Law, University of Genoa

• Richard Kilgust, Global and U.S. Regulatory Affairs Leader, PricewaterhouseCoopers

• Jay W. Lorsch, Louis E. Kirstein Professor of Human Relations, Harvard Business School

• Elaine La Roche, Independent Non-Executive Director, China Construction Bank; Non-Executive Chairman of the Board, Linktone

• Masatsugu Nagato, Managing Executive Officer Americas, Mizuho Corporate Bank

• Eric D. Roiter, Senior Vice President and General Counsel, Fidelity Management and Research

• Jochen Sanio, President, German Federal Supervisory Authority

• Sarah Ball Teslik, Chief Executive Officer, Certified Financial Planner Board of Standards, Inc.

The discussion was moderated by PIFS Director Hal Scott. Standard & Poor’s President Kathleen A. Corbet andBusinessWeek Executive Editor Joyce A. Barnathan extended welcome and opening remarks.

The event was made possible through the sponsorship of Standard & Poor’s and BusinessWeek.