Just looking at the title makes me want to skip it. 
It seems that there wasn’t a single questions on Corporate Governance in Level one and Level two exams that I took.
audit committee questions in ethics last year was kind of corporate governy… (yeah, i know that’s not a word.)
cfasf1 Wrote: ------------------------------------------------------- > audit committee questions in ethics last year was > kind of corporate governy… (yeah, i know that’s > not a word.) Then we make it a word. Word: Governy root: governance. Governy: A drecription of a kind of Corparate governance question on the 2009 CFAI Level2 exam. There u go. 
could I have the language of origin, please?
latin of course
In an effort to figure out what we need to know for CG. I have put the list below. Please feel free to comment with your thoughts and or additions to what you think is important for this reading. * Moral Hazard Problems: Insufficient effort, Extravagant Projects, Entrenchment Strategies and Self Dealing * Managerial Performance incentives: The stronger the implicit incentive the less important are the explicit incentives * Explicit: Salary, Bonus, Stocks and Stock Options * Implicit: Possibility of being fired or loss of control * Board Shortcomings: Lack of independence, lack of time commitment, compensation and they try to avoid conflict with management * Board Shortcomings Solutions: Independence, seek outside advice, hold min. equity * Stakeholders vs. Stockholders: Stakeholders model does not work well.