1
Assistant Professor of Economics at Sharif University of Technology
2
MSc Student of Economics, Sharif University of Technology
Abstract
Abstract
The Iranian pension system has faced multiple challenges and significant deficits over the past years. This has made the pension system reform a top priority and improving the governance of pension funds is increasingly recognized as an important element of such reform . This paper highlights the main differences between the effectiveness of internal and external corporate governance mechanisms in corporations and pension funds . We argue that the typical external governance mechanisms that help align the interest of managers and main stakeholders , namely shareholders , in corporations , are not applicable in the context of pension funds . As a result , the governance of pension funds mostly relies on internal governance mechanisms and , in particular , the board of trustees . We offer tentative thoughts and solutions about the structure of the board of trustees and other internal governance mechanisms including transparency and information disclosure .
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