Before discussing corporate governance, it is necessary to define the objective of the firm clearly. From the economist’s point of view, profit maximisation is the right criterion as long as it leads to maximizing total wealth and welfare. The presence of pension funds in firms’ capital favors the pursuit of this objective by managers.
CHARLETY-LEPERS, P. (1998). Les enjeux du gouvernement d’entreprise. Encadrement Magazine, pp. 23-24.