Michael Murray: The Volkswagen scandal reminded us anew of the importance of transparency

Some work has been done since the financial crisis to more closely align directors and their senior management team’s interests to those of outside shareholders. This isn’t just about pay packages or banks – as the recent Volkswagen experience shows. It is about corporate culture and behaviour. It is about the absence of transparency in relation to profit smoothing – bringing forward earnings from one year or pushing them forward to the next ...