Audit Committee The Audit Committee is comprised of the following five members from the Board; F. Duane Ackerman, Ari Bousbib, J. Frank Brown, Karen L. Katen, and Mark Vadon. This group is tasked with assisting the Board with the oversight of The Home Depot’s financial statements, ensuring that they are in compliance with legal and regulatory requirements. They also review and monitor the Company’s Compliance program, making changes when appropriate to ensure that the Company remains compliant. This committee must be comprised of three or more independent directors from the Board and they cannot receive any compensation other than directors’ fees from Home Depot. A requirement for this committee is to have a basic understanding of finance and accounting principles and practices. At least one member must be an “audit committee financial expert.” Mr. Brown acts as the audit committee financial expert. The members of this committee all have knowledge in basic accounting and finance principles and also bring in a variety of knowledge in different areas. Leadership Development & Compensation Committee The Leadership Development and Compensation Committee of the Board of Directors are responsible for helping with the development, attraction, and retention of The Home Depot’s leadership. They are also responsible for establishing the Company’s compensation and benefit programs. Some of their goals are as follows: 1. To establish the compensation policies and strategy of the Company. 2. To review compensation policies and ensure that the compensation of the Board of Directors, officers and associates allows for the Company to attract and retain high-quality leadership. 3. To establish policies related to human resources and emp... ... middle of paper ... ...p=irol-govCommittee&Committee=8273 Our company. (2013). Retrieved from https://corporate.homedepot.com/OurCompany/Pages/default.aspx Our leadership. (2013). Retrieved from https://corporate.homedepot.com/OurCompany/Leadership/Pages/default.aspx The home depot values. (2013). Retrieved from https://corporate.homedepot.com/OurCompany/Values/Pages/default.aspx Shivdasani, A., & Zenner, M. (2004). Best practices in corporate governance: What two decades of research reveals. Journal of applied corporate finance, 16(2/3), 29-41. U.S. Securities and Exchange Commission, (1999). Nyse chair richard grasso, nasd chair frank zarb, and blue ribbon panel co-chairs ira millstein and john whitehead announce "ten point plan" to improve oversight of financial reporting process(Press release 99-14). Retrieved from website: http://www.sec.gov/news/press/pressarchive/1999/99-14.txt
That committee is made up of 6 board members and 2 community members who are not on the board.
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
The Home Depot learned the hard way that you must hire a leader that will stay true to the core values. The leader’s ethics and values will play a huge role in determining if the company will succeed or fail. The founders of The Home Depot built a culture on the foundation of respect, integrity, and compassion. The culture and customer service under the influence of the admired founders prospered.
The key focus areas of board oversight is as follows as stated in (Holly J. Gregory, 2014)
Consequently, managers who pursue their own interests rather than that of the company may underperform its duties. The following corporate governance mechanisms can play a major role in preventing managers from engaging in activities that lower firm value thereby incentivizing management to perform excellently. This essay will briefly consider three of those mechanisms that gear management towards excellent performances.
Home Depot is the world’s largest home improvement retailer that sell an assortment of building materials, home improvement products, and lawn and garden products, as well as provide installation and home maintenance service to customers. It was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision is to open a one-stop shopping stores for the do-it-yourselfer. The first two Home Depot stores was opened on June 22, 1979, in Atlanta, Georgia.
- Provides a structure for management and the Board to set objectives and monitor performance
In our study of corporate governance and its impact on the overall economic and business environment, we have considered the example of Japanese Corporate governance and have compared it with other systems. We will study the comparative performances of the companies working in the Japanese system of corporate governance and the organizations working in other systems of corporate governance, primarily that of the United States. We have discussed the concept of corporate governance as well as management practices in detail and have tried to identify the difficulties and the barriers the company’s usually face while following a specific system of corporate governance. The detailed description of the corporate governance concept is primarily derived from the works of several management experts. We have considered the most commonly used concept of corporate governance in our study and have accordingly proposed the solutions to the problems that the companies usually face while adopting a certain system of management. In the next chapter we will discuss the issue of corporate governance in relation to the example that we have considered in the beginning of our study. Instruments: The literature review will be helpful in obtaining certain useful information relating to the study. This information will include: the history of the Japanese business organizations, their management practices, their decision making procedures, their business philosophies and other issues related to their system of corporate governance. In addition to this, the organizational performance of Japanese business entities, as compared to other organizations will be studied. The information thus obtained will be used to identify the effects of Japanese system of co...
Lazonick, W., & O'Sullivan, M. (2000). Maximizing shareholder value: a new ideology for corporate governance. Economy and Society, 29(1), 13-35. Retrieved from http://www.uml.edu/centers/cic/Research/Lazonick_Research/Older_Research/Business_Institutions/maximizing shareholder value.pdf
The primary role of the Remuneration Committee is to provide help to the board of directors in their responsibility to set the remuneration policy that is aligned with the company’s long-term goals. The committee should reflect upon and then recommend the remuneration policies that will be applicable for every employee level in the company. The committee should make sure that it pays special attention to the compensation of the company’s most senior executives and the compensation of the non-executive directors that sit on the board of directors.
The Board of Directors believes that the primary responsibility of the Directors is to provide effective governance over Halliburton's affairs for the benefit of its stockholders. Responsibilities responsibility includes: reviewing succession plans and management development programs for members of executive management; reviewing succession plans and management development programs for members of executive management; reviewing and approving periodically long-term strategic and business plans and monitoring corporate performance against such plans; adopting policies of corporate conduct, including compliance with applicable laws and regulations and maintenance of accounting, financial, disclosure and other controls, and reviewing the adequacy of compliance systems and controls; evaluating annually the overall effectiveness of the Board; and reviewing matters of corporate governance
Today, at the close of the century, corporate governance is still an important tool for monitoring performance and enhancing value even though the ultimate shape of this tool is in the process of being forged.
Corporate Governance has over the past two decades become a pertinent subject in the corporate world owing to the control that rests in the hands of owners/shareholder, directors and senior officers of a corporation in the financial decisions of the said corporation.
It is the responsibility of the TMT to support the CEO and the DMD in:
Organization for Economic Co-operation and Development. Improving Business Behavior: Why we need Corporate Governance. Oct. 2004. OECD.