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State-controlled companies

In many markets, state-controlled companies dominate the economy. The governance challenges these companies face are multifaceted and unique.

For example, there is often the need to separate political from professional considerations when making important decisions and shaping the board. Incentives systems and practices that promote meritocracy (such as regular governance assessments and board evaluations) often become a headache for the leadership of organizations accustomed to a “civil service” mentality. In certain organizations, concerns over real or perceived corruption at a business level need to be proactively addressed while avoiding over-centralization of decision making and the creation of “bottlenecks” at the top.

The Morrow Sodali Board & Governance team helps state-controlled groups address corporate governance challenges in a variety of national environments, in both developed and emerging markets.

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