We have provided recommendations for improving the corporate governance system that are based on creating proper incentives. We hope that these ideas are thoroughly discussed and even improved upon. It will take effort by many participants in the corporate system to make the changes we recommend. The government and regulators must implement some of these ideas. Other recommendations will have to be enacted by corporate boards of directors. It is in everyone's long- term interest to improve the system and restore investor confidence. However, it will take more than just fixing the system to restore investor confidence. We discuss this issue in the next chapter. |