Ten actions the board can take now!

There is significant speculation today about what will be expected of public companies and their boards around environmental reporting and consideration of risks. While the exact form this will take is under debate, one thing is certain — companies must ensure that directors individually and their board as a whole are prepared for this increased responsibility. So, what do directors need to do to prepare themselves, and what actions should the board take collectively?

An efficient board must set the tone for a company’s cybersecurity prioritization.

Activists are launching more campaigns, and they are finding more success.

Meanwhile, the best home for ESG oversight is still up for debate.

In its recently released fall board pulse survey, Proactive Governance to Address Recessionary Pressures, BDO USA sought to pinpoint the obstacles boards currently face and what strategies they use to overcome them. The survey found that boards prioritize the driving of growth and planning for recessionary declines in product or service demand. 

Dual-class shares make companies unaccountable to shareholders, markets and courts.

Over the last decade, company founders have been opting to shore up control by creating multi-class voting structures that undercut shareholder voting power. This stock ownership structure reduces shareholder influence, undermines corporate governance and shifts the burden of investment grievances to the courts.

Buybacks can be a boon for shareholders, but a detriment to employees.

Who: The tax applies to corporations with stock traded in an established securities market, if the total stock traded (including adjustments) has market value of $1 million or more. It does not apply to investment companies or real estate investment trusts. Foreign companies have special rules. 

A business’s departure from an international market requires extensive board contemplation.

What is the effect of Cold War II on corporate governance?

What should boards and companies do or not do when confronting the impact of geopolitical crises? It may be helpful to consider the broader context giving rise to these issues, namely why we’re in the situation, the lessons we’re learning about geopolitical risk in real time and the key insights that may be helpful in preparing for future geopolitical crises. These questions are timely because they address very important, urgent and serious matters that deserve thoughtful and prudent consideration.

Before speaking out on an issue, make sure it has an impact on company business.