“Governance is not a compliance exercise. It is a strategic asset.”
In a constantly evolving business environment, corporate governance has become a key pillar in addressing both current and future challenges. It is now part of a global conversation. Board composition, oversight, accountability, and transparency are central issues today—for both investors and companies seeking to adapt to new demands and build more ethical, sustainable businesses.
We spoke with Gabriel Hasson, Advisory Board Member at BH Compliance, to explore how governance practices are evolving in the United States, Latin America, and globally—and what concrete lessons can help guide organizations toward transformation with purpose and leadership.
What global trends are shaping the transformation of corporate governance and how has the U.S. market responded?
We’ve seen a steady globalization of governance norms. Issues that were once considered regional, like board diversity in the U.S. or controlling-shareholder dynamics in Latin America, now sit within a shared global conversation. Sustainability and climate are also shaping expectations, with investors pushing for clearer disclosure on long-term risks. The U.S. has responded in two ways: first, through a greater emphasis on transparency and shareholder rights. Second, by balancing investor demand with regulatory scrutiny, particularly around ESG. What stands out is the degree to which U.S. practices are influencing global debates while also adapting to international pressures.
How would you characterize the evolution of corporate governance practices in recent years, particularly in the U.S. and Latin America?
In the U.S., governance has become more institutionalized. Proxy access, majority voting, and board refreshment are now established practices. In Latin America, we’ve seen significant progress, especially in markets like Brazil, Mexico, Colombia, and Chile, where companies on premium listings or under investor scrutiny are adopting higher governance standards. At the same time, structural challenges remain. Concentrated ownership and cross-shareholdings continue to complicate governance outcomes. The region is moving forward, but progress tends to be uneven across countries and sectors.
In what ways does the quality of governance influence institutional investors’ perception of risk and decision-making?
For investors, governance is often the first filter when assessing long-term risk. Weak governance can magnify other risks, whether operational, reputational, or financial, because it signals potential misalignment between management and shareholders. Conversely, strong governance gives investors greater confidence that capital is being stewarded responsibly. This
influences not only investment decisions but also how investors engage with companies, whether through direct dialogue, proxy voting, or in some cases, capital allocation.
What themes or patterns are you observing as companies work to strengthen their governance practices?
A few themes stand out. First, boards are under greater pressure to demonstrate effectiveness, not just independence on paper but genuine oversight and strategic contribution. Second, executive compensation remains a flashpoint, particularly alignment with performance and sustainability goals. And third, disclosure is becoming a competitive differentiator. Companies that are transparent about governance practices often gain an advantage with both investors and regulators. These themes cut across markets, though the pace and intensity vary.
Why do you believe strong governance serves as a foundation for more ethical, transparent, and sustainable companies over the long term?
Because governance is ultimately about accountability. Companies with robust governance frameworks are more likely to identify risks early, integrate stakeholder perspectives, and hold leadership to high standards. That discipline supports ethical conduct and transparency, and over time it builds resilience. Strong governance does not guarantee sustainability outcomes, but it creates the conditions in which ethical and long-term decision-making can thrive.
What lessons can be drawn from companies that have successfully enhanced their governance practices, and how might these experiences inform broader market expectations?
The most successful examples show that governance is not static. Companies that adapt to evolving expectations, whether through board renewal, improved disclosure, or better shareholder engagement, tend to earn stronger investor trust. Importantly, these lessons scale. Large multinationals and family-controlled firms alike can demonstrate credibility by aligning governance with global best practices while respecting local realities. What markets are increasingly signaling is that governance is not a compliance exercise. It is a strategic asset.
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