Abstract

The case examines the dual corporate governance structure of France based AXA, one of the leading insurance and investment management companies in the world. In a span of three decades, AXA acquired several financial services companies globally. When AXA aimed at becoming a truly global company and started consolidating its global operations, the company felt that a judicious mix of centralization and decentralization of activities was required. AXA centralized its operations to the extent necessary and its subsidiaries in different countries had complete freedom to operate according to the local conditions. The case discusses in length about the roles played by AXA's management and supervisory board to maintain a firm control over the operations of the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the importance of strong governance practices in a global company
• Understand the advantages and dis-advantages of a dual governance structure in a global company
• Examine how AXA maintained the balance between centralization and decentralization of its core activities.

Keywords

AXA, Governance Structure, Globalization, Control Systems, Centralization, Decentralization, Corporate Governance, Operational Excellence, Supervisory Board, Management Board, Key Performance Indicators, Centrally Managed Functions, Localization