A Comparative Study of Corporate Governance in India and the USA

This paper explores the concept of corporate governance with the comparison in governance framework, board structure and its role, Shareholder Rights and Activism, Enforcement and Compliance, Remuneration to Board Members, Executive Compensation, Terms of service of Directors, Composition of the Board of Directors in corporate governance of two major countries USA and India. The study reveals that most of the practices of the Corporate Governance are common but also there is dissimilarities in terms of board size, board composition and independence, leadership structure, and gender diversity in both India and Unites States. The study indicates that US Companies have larger board with majority of independent directors prominence of combined leadership structure, relatively more gender diverse as compared to India. The U.S. system benefits from a well-established regulatory framework with strong enforcement and active shareholder engagement. In contrast, India’s governance framework is evolving with recent reforms aimed at improving practices, but challenges such as family-run businesses and inconsistent enforcement remain.