What does it take to be a high-impact board?
Executive compensation continues to be a key focus of legislators, regulators, activists, and the media. Boards continue to be challenged with how to balance the expectations of outside constituents with management’s expectations to be fairly compensated. Compensation committees must stay apprised of ongoing regulatory proposals and enactments. And they must create new ways to reward their management team to remain competitive against their peers to keep their top employees.
It seems that our headlines are littered with stories of fallen icons almost every day. Too many to name. Too sad to fully grasp. Our society has become tentative to embrace its true heroes for the fear that they will only eventually let us down.
Years ago, a highly regarded director and board chairman confided, "We have to be better about getting the poor and mediocre directors off the board." The issue was the collegiality of the boardroom and the reluctance to confront a non-performing director.
Today, according to the latest PwC 2013 Annual Corporate Directors Survey conducted during the summer of 2013, directors have signaled increased concern about their peers in the boardroom. With 934 public company directors responding, 35 percent now say someone on their board should be replaced compared to 31 percent in 2012.
Time for Criminal Penalties Against Non-Profit Board Members?
I thought I was late to write about JP Morgan's $920 million multi-regulator settlement last week on the London Whale, but breathless news of a possible $11 billion settlement of mortgage-related liabilities has pushed the bank and its chief back under the hot lights.
Will a Shift in Barrick Gold's Corporate Governance Send the Stock Higher?