The power of Colombian boards of directors
Julio Manuel Ayerbe and Carlos Hugo Escobar, longstanding members of investment committees at MAS Equity Partners, highlighted by Colombian business digest Dinero, as examples of good corporate governance.
Partners value creation methodology. Starting from a proper integration of the board, the adoption of an effective information system for business monitoring and disciplined procedures for presenting and debating the agenda for decision making,, strengthens corporate governance thus allowing management to act more effectively under a clear strategic guidance. This is the essence of MEP’s investment management philosophy.
big lessons left from the international corporate scandals like Enron, Tyco, Worldcom and Stanford, and local ones like the crackdown of Interbolsa and payroll lending firms, the excess costs of Reficar, and the bribes of Odebrecht, to mention a few, is the need to count on strong and professional boards that guarantee the sustainability of the business, and not just a meeting space for good friends that cheer every say or management decision……
…That reflects the importance and responsibility of a company’s board. It is about the maximum government body that commands the organization, assures control and supervision of top management, defines the business course, and how to make it sustainable in the long term. It also appoints or removes the CEO. For those reasons, it is a mistake to leave the business direction solely in the hands of management, and let board members and shareholders be passive guests or silent partners in the decision making process.”