The guilty verdict in the trial of top Enron executives Kenneth Lay and Jeffrey Skilling in the US marks another milestone in the change that has occurred in global attitudes towards corporate governance in recent years.

US justice officials said the Enron verdict showed that even powerful executives should not consider themselves above the law. At the same time, there are critics who say the pendulum has swung too far, and the harsher legal and regulatory climate is increasing the cost of doing business, stifling entrepreneurs and discouraging skilled and experienced people from serving on boards - and not necessarily achieving its aims.

Those charges have been made internationally and in SA, a developing economy with a skills shortage. Many experienced SA directors have multiple directorships, filling roles that often demand adroit balancing acts (see table).

In the local business environment, corporate governance continues to generate controversy, though it has also produced positive results.

Despite the combination of governance codes, board committees, involvement of independent directors, greater oversight over accountants and auditors, tighter JSE regulations and a less tolerant public attitude, governance failures continue to occur.

Brett Kebble's pillaging of companies such as JCI offers new evidence that the buccaneering spirit lives on in boardrooms.

There have been other cases, however, where companies have had to retreat - at considerable cost - from practices that had long been accepted by their boards but were contrary to present expectations of stakeholders.

After many adverse rulings by the Pension Funds Adjudicator, and an agreement struck with finance minister Trevor Manuel last December, life assurers revised longstanding practices applied when selling retirement products. Collectively they made provisions for more than R2,5bn to cover the costs.

Another financial services group, Alexander Forbes, made a provision of R380m because it had benefited from "bulking" client retirement funds together. Alexander Forbes Africa CEO Peter Moyo said the practice was historical, but the group admitted, among other things, to inadequate disclosure to clients.

Reputations have suffered, but broader awareness of governance needs may have increased.

Other important themes related to corporate governance this year include shareholder activism, directors' pay, management succession and the effectiveness of nonexecutive directors.

The Public Investment Corporation, which manages state employees' retirement funds and is a big shareholder in many listed companies, has leaned on a number of boards, particularly on matters concerning BEE.

Last year it criticised Sasol for its perceived slow progress with BEE. Later, after a change in top management, with Pat Davies and Trevor Munday respectively coming in as CEO and deputy CEO, the group appointed several black directors and senior managers.

Transitions and management succession have brought significant changes for some companies, and reflected on boards in different ways.

At Sappi, retired CEO (and now chairman) Eugene van As had to return as acting CEO after Jonathan Leslie left suddenly in March this year.

Massmart handled its succession issue more smoothly. Its board appointed a CEO-designate, Grant Pattison, almost a year before longstanding CE Mark Lamberti's contract expires, in July 2007.

Sudden departures of CEOs have brought significant changes for several life assurers, including Liberty Life, Old Mutual and Momentum Life. All these CEOs left voluntarily.

In a growing and competitive economy, life has become more stressful for directors and managers, who are expected to meet governance standards, deliver shareholder value, make social contributions, cope with skills shortages and meet BEE and employment equity standards.

But the potential financial rewards have also increased greatly, boosted by a rising stock market and the enthusiastic espousal by many boards of performance-linked pay.

Both bonuses and share option payouts have risen sharply in recent years. Among the most conspicuous - and controversial - of these was the R51m share-linked bonus paid to Shoprite CEO Whitey Basson in 2005.