Ghosts in the boardroom
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An article in The Wall Street Journal touched on an interesting topic called "Ghosts in the Boardroom" which, it claims, may be at the heart of the Toshiba scandal.
It’s a practice that allows retired executives to stay on as advisers. The Japanese terms for them are “sodanyaku” or “komon”. Sodanyaku typically refers to former company presidents while komon also includes outsiders.
According to WSJ, the clout the former executives still retain long after they retire may explain why Japanese companies are so slow to change. Who will dare dismantle the investments these former executives made when they are still sticking around as advisers?
This may also be one of the major reasons why Thai companies, especially the state-run firms, are slow in adapting to changes. It has become a tradition among these firms to have former top executives staying on as advisers. Who wouldn’t want these positions that come with all the perks and privileges?
It’s high time we start looking into this issue in Thailand. We might find some “ghosts” lurking among the living who should have disappeared long ago.
Anan Pakvasa
