Transparency is considered the be all and end all for clarifying and comprehending the performance of organisations and their boards. Experience has shown, however, that in the day-to-day operations of both listed companies and public entities, such as housing associations, legally mandated transparency does not guarantee good governance.
Moreover, given the growing complexity of 'governance', top salaries would appear to be no guarantee of quality either, and lower salaries even less so.
Organisations do not generally run into problems because of a lack of transparency, but because of a lack of integrity at the highest level of management. People who act honourably and in good conscience are invaluable. Weigh that up against the cost of losing your good reputation or damage control in the case of misappropriations!
Unfortunately, the notion of transparency is becoming merely symbolic. Maes & Lunau believes that it is integrity that matters most in good governance and that implies that salary is of secondary importance. Let the job market do its job in that respect.
Maes & Lunau Executive Search
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