OMAHA, Neb. (AP) — Billionaire Warren Buffett and several other prominent business leaders have released a group of recommendations for improving corporate governance.
The list of best practices includes recommendations to choose board members from diverse backgrounds who are independent of a company's management.
The group also suggests public companies should avoid the common practice of offering earnings guidance.
Buffett said on CNBC that forecasting earnings, which he doesn't do, can lead to malpractice because executives have an incentive to tweak results just to match the CEO's forecast.
The group's full recommendations are available online at www.governanceprinciples.org . Buffett says the report is designed to encourage discussions about governance.
Buffett says JP Morgan Chase CEO Jamie Dimon organized the group, which included General Motors CEO Mary Barra, General Electric CEO Jeff Immelt and several others.