Governance Arbitrage: Blowing Up the Public Company Governance Model to Maximize Long-Term Shareholder Value

Maximising the boards potential is critical to maximising the value of any company, but in most public companies today, the board is an undervalued and underutilised asset, focused mainly on compliance and oversight rather than on maximising performance and long-term shareholder value. The real problem is that the traditional public company governance model itself is flawed and solutions proposed for improving it are typically focused on changing the model from within – inadequate attempts to tweak boards rather than to transform the model into one that is more effective. This unique book offers a fresh new approach – the value maximisation model – based on private equity governance. This more robust model results in a board that is directed by a clearly defined governing objective, populated with the right directors, and fully developed as an asset of the company. This radically new model makes an arbitrage play possible – a tangible gain in company performance and shareholder value.