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	<title>Chris Hanretty &#187; corporate governance</title>
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	<description>Notes on Italian politics and public broadcasting</description>
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		<title>The governance of public broadcasters</title>
		<link>http://chrishanretty.co.uk/blog/index.php/2007/05/17/the-governance-of-public-broadcasters/</link>
		<comments>http://chrishanretty.co.uk/blog/index.php/2007/05/17/the-governance-of-public-broadcasters/#comments</comments>
		<pubDate>Thu, 17 May 2007 16:09:00 +0000</pubDate>
		<dc:creator>Chris</dc:creator>
				<category><![CDATA[corporate governance]]></category>
		<category><![CDATA[legal]]></category>
		<category><![CDATA[public service broadcasting]]></category>

		<guid isPermaLink="false">http://chrishanretty.co.uk/blog/?p=139</guid>
		<description><![CDATA[Most of the time, I look at public service broadcasters (PSBs) as exquisitely political creatures.
Most of the time, I think that&#8217;s the right perspective.
Recently, however, I&#8217;ve been looking at PSBs as corporations, with all the associated paraphernalia of corporate governance. The results have been interesting.
PSBs can be divided into two types: dual board, or single-board.
German [...]]]></description>
			<content:encoded><![CDATA[<p>Most of the time, I look at public service broadcasters (PSBs) as exquisitely political creatures.</p>
<p>Most of the time, I think that&#8217;s the right perspective.</p>
<p>Recently, however, I&#8217;ve been looking at PSBs as corporations, with all the associated paraphernalia of corporate governance. The results have been interesting.</p>
<p>PSBs can be divided into two types: dual board, or single-board.</p>
<p>German PSBs have dual boards: a massive, supervisory board (<span style="font-style: italic;">aufsichtsrat</span>), composed of upwards of twenty members representing civil society, and a much smaller executive board, led by a <span style="font-style: italic;">generalintendant. </span>Something like <span style="font-style: italic;">France Télévisions</span>, by contrast, has a single board of five members, with a President/CEO.</p>
<p>Until now, I&#8217;ve viewed the institutional choice between single- or dual-board structures as a political one: where politicians choose a dual-board structure, they do so because they believe this  structure provides a buffer against political pressure, and because they want to insulate the PSB from such pressure.</p>
<p>What if these choices aren&#8217;t made with conscious objectives in mind? What if, instead, politicians just follow examples drawn from other fields?</p>
<p>In corporate governance generally, we can draw a line between three groups (Hopt, Klaus J., &#8220;The German Two-Tier Board&#8221;, in Hopt, et al, <span style="font-style: italic;">Comparative Corporate Governance </span>(Oxford, OUP):
<ul>
<li><span style="font-style: italic;">single board countries</span>: UK, USA, Ireland, former British colonies, Spain, Italy, Portugal and Greece</li>
<li><span style="font-style: italic;">dual-board countries</span>: Germany, Switzerland, Austria, the Netherlands, Scandinavia;</li>
<li><span style="font-style: italic;">mixed countries</span>: Eastern Europe, France, Belgium</li>
</ul>
<p>If the corporate governance of PSBs reflects <span style="font-style: italic;">national practice</span> rather than <span style="font-style: italic;">political views </span>about the desirability of independence, then we should expect single-board countries to have single-board PSBs, dual-board countries to have dual-board PSBs, and mixed countries to plump for either. What&#8217;s the evidence like? Of the twenty-nine PSBs for which I have access to the legislation, here&#8217;s the breakdown:
<ul>
<li><span style="font-style: italic;">single board PSBs</span> (11): USA, Australia, Canada,  New Zealand,  South Africa, Chile, Spain [post-reform], Portugal, Greece(?),  France, Bulgaria</li>
<li><span style="font-style: italic;">dual-board PSBs</span> (18): Austria, Croatia, Denmark, Estonia, Finland, Hungary, Israel, Japan, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia, Spain [pre-reform],  Italy, UK, Ireland,</li>
</ul>
<p><span style="font-style: italic;"></span>The fit is not bad. Three dual-board countries don&#8217;t fit: Italy, UK and Ireland; no single-board countries don&#8217;t fit. There are some countries whose systems of corporate governance I don&#8217;t know enough about to decide whether their placement is accurate (Israel, Japan, Chile).</p>
<p>Some tentative conclusions:
<ul>
<li>PSB governance may be strongly influenced by more general corporate practice;</li>
<li>those countries which could have opted for either system chose dual boards;</li>
<li>the choice of governance for the BBC and RTÉ was contrary to corporate practice;</li>
<li>It nevertheless seems to have been a good choice, with both broadcasters enjoying a better reputation than TVNZ, ABC, or (especially) the CPB in the USA, at least in this author&#8217;s judgement;</li>
</ul>
<p>Therefore, the dual-board model may be preferable for public broadcasters, squaring the circle of accountability and independence.</p>
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