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Compensation Impacts CultureIssue: 2019 Third QuarterTime to take stock of executive pay and perks programs.Leadership and tone at the top are obvious corporate culture influencers. What might be less obvious is how decisions on compensation structure shape, steer and promote corporate culture.Compensation committees are increasingly discussing how th...
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Crisis ManagementIssue: 2019 Third QuarterMaking it safe for people to do the right thing.Crisis prevention has taken on greater urgency for management and boards as corporate crises, frequently self-inflicted, continue to make headlines. The deep and long-lasting reputational impact of self-inflicted crises — product quality, worker safety...
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Human CapitalismIssue: 2019 Third QuarterWhen the going gets tough, how important will those stakeholders really be?At the heart of the discussion surrounding environmental, social and governance issues (ESG) is the extreme tension between the short and the long term. Much of the reaction to The Business Roundtable’s “new” Statement of the...
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My Board Journey: Anthony Earley, Director, Ford Motor Company, Southern Company and CLEAResultIssue: 2019 Third QuarterI understand your first board stint was with Long Island lighting Company. How did you end up on that board?My first board experience was somewhat atypical but did give me insights into what skills are needed for successful board members. In the mid-1980s, I was hired as general counsel of Long isla...
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Pickens Carried Friedman’s TorchIssue: 2019 Third QuarterAlmost every story on the origins of corporate American’s shareholder-centric approach includes a history lesson on economist Milton Friedman and his role in bolstering the concept that many believe has led to a short-term approach to company success, undermining innovation and employees.Friedman’s ...
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How Do I Know If I am the “Bad Character” on the Board?Issue: 2019 Third QuarterHow directors can determine if they are serving — or hindering — a board.In more than 23 years spent working with 175-plus corporate boards, Beverly Behan has learned this firsthand: The problem people on any board are the ones who are oblivious and obstinate.As a board advisor helping directors rev...
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Employee as DirectorIssue: 2019 Third QuarterA 1991 article in the New York Times with the headline “Chrysler to Drop Union President’s Spot on Its Board” may have sounded the death knell of a brief experiment in this country to get employees in the boardroom.The practice never really made it much past the auto industry, and it’s been decades ...
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Culture of InclusionIssue: 2019 Third QuarterDiversity and inclusion have been business buzzwords for decades, but in recent years a growing number of companies have realized that creating a diverse and inclusive culture is not only good public relations, it’s good for the bottom line.A strong body of research shows that truly diverse and incl...
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Solving the Board-Diversity ImperativeIssue: 2019 Third QuarterOne of the common barriers when it comes to getting more diverse voices in the boardroom is not seeing beyond your own networks.Case in point. In an effort to diversify the board of a Fortune 500 company, a board member recommended his neighbor who was professor emeritus of information technology at...
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5 Types of Diversity Often OverlookedDon’t just focus on filling quotasSome lawmakers, regulators and shareholders are actively encouraging boards to recruit diverse candidates by setting quotas for diverse hires; and California’s recently passed law mandating gender diversity is just the most recent example. But are such moves re...
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Director Data Q3 2019Disclosure of Auditor Fees is on the RiseMost companies provide an explanation for the types of services included within each fee category, according to a report by EY’s Center for Board Matters. Reviewed companies explained the circumstances for the change. Nearly 90% of companies disclosed that th...
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THE PURPOSE DEBATE Western Union’s First ESG ReportIssue: 2019 Third QuarterCEO Hikmet Ersek rides the “purpose” train, supported by the board.At Western Union, we believe we can be more successful as a company when we operate according to the highest ethical standards, address unmet social needs and promote the well-being of our consumers, their communities and the environ...
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THE PURPOSE DEBATE Former Vanguard CEO Weighs in on ‘Purpose’ & ESGIssue: 2019 Third QuarterBill McNabb says a focus on the greater good leads to long-term value.Bill McNabb, the former CEO and chairman of investment behemoth Vanguard Group, believes many people aren’t seeing the ultimate value of a growing movement for corporations to have a social-purpose focus.“Many pundits and critics ...
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THE PURPOSE DEBATE IntroductionIssue: 2019 Third QuarterBack to the ‘80s: Business Roundtable’s “Purpose” Statement ReduxThe group’s 1981 statement called for corporations to be “a positive force in society.” What’s different this time?By Kristin Bresnahan Three Problems With the Stakeholder TheoryBusiness Roundtable’s misguided decision to pu...
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THE PURPOSE DEBATE Social Good UprootedIssue: 2019 Third QuarterHow America’s corporations lost their public purpose.These may be flush times for the American corporation, but the bounty is not being translated into a prosperity that is sustainable or broad. How has the corporation’s vision become so foreshortened? Its largess so narrowly bestowed? Its malfeasan...
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THE PURPOSE DEBATE Back to the ‘80s: Business Roundtable’s “Purpose” Statement ReduxIssue: 2019 Third QuarterThe group’s 1981 statement called for corporations to be “a positive force in society.” What’s different this time? By Kristin BresnahanThe Business Roundtable issues this statement out of a strong conviction that the future of this nation depends upon the existence of strong and responsiv...
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THE PURPOSE DEBATE Three Problems With the Stakeholder TheoryIssue: 2019 Third QuarterBusiness Roundtable’s misguided decision to put shareholders last. An unpleasant déjà vu.By Charles M. ElsonThere is nothing really new about the Business Roundtable’s Statement on the “Purpose of the Corporation.” It is simply the return of the groups historic and misguided support for stakeh...
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Is Your Board Compliant or Complacent?Facebook fine and recent court ruling highlight need for board oversightAfter a year-long investigation into Facebook’s privacy missteps, the Federal Trade Commission levied an unprecedented $5 billion fine against the tech giant. In addition to this fine (which equates to about 59 days of operating...
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What a Stakeholder Approach Means for Executive CompensationThe Business Roundtable’s declaration should lead to new comp committee goalsWhat does it mean for boards and compensation committees that 181 CEOs from the Business Roundtable amended a long-standing statement of corporate purpose last month? The CEOs declared that the purpose of companies is to se...
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JetBlue Chairman's Trust TipsHow Directors Can Build Organizational TrustTrust is a leader’s most important currency. It is also foundational to the value of a brand. At its core, a great brand is a reliable promise — one people can trust to deliver results whether a service, a product or an experience.Trusted brands extend not...