Iberdrola's Corporate Governance Structure and Mechanisms - Prof. Jiménez, Apuntes de Contabilidad

¡Descarga Iberdrola's Corporate Governance Structure and Mechanisms - Prof. Jiménez y más Apuntes en PDF de Contabilidad solo en Docsity! 2) Identify the corporate governance structure of Iberdrola (Governance Chain). What governance mechanisms are established for the control and operation of government bodies. Corporate governance implies the structures and systems of control by which managers are held accountable to those who have a stake in the organization. Beside that, the Governance Chain represents all the groups that have an influence on the organization by participation directly in it. The board of directors is the following: Chairman: Jose Ignacio Sanchez Vice chair: Victor de Urrutia Chief executing officer: Jose Luis San Pedro And then there are some directors that are heading many departments. In the executive committee, apart from the chairman there are five members that help in making decisions. There is also another team called the Board of Directors that don’t have executive power. They guide and promote the policy of the company; another function is the control management; and they work as a link with the shareholders. And also they focus on the determination and supervision of the strategies and guidelines that has to follow the company. The role of boards is very important because it operates in an independent way and they are competent to analyze the manager’s job. Four types of directors are needed to complete all the work: executive, proprietary, independent, and other external directors. In the Board of Directors we can find the Principal Shareholders Control and external auditors that can bring some help to the directors. To carry out the control of the company, the incentive systems try to link the interests of managers with the interests of owners. It covers few incentives like variable compensation, access to property and careers. Another mechanism is the market, sometimes it happens that the managers tries to achieve their own goals regardless the agreements made before with the shareholders and also the owners, what it could happen is that foreign investors may be interested in buying the company and replace those directors.