Performance in the Spotlight

Investor focus on board performance has reached new levels of intensity. The chairman and CEO of Vanguard, one of the largest mutual fund companies in the world, recently sent letters to the independent directors of its biggest holdings in which he outlined six principles of governance. “In the past, some have mistakenly assumed that our predominantly passive management style suggests a passive attitude with respect to corporate governance,” he wrote, “Nothing could be further from the truth.”