• The core function: Guidance or compliance?
    Issue: 2007 Second Quarter
    By Doug Raymond
    LEGAL BRIEF The core function: Guidance or compliance? The former is important, but the latter is crucial. Who else but the board would do it? BY DOUG RAYMOND A S WE APPROACH the fifth an- niversary ofthe adoption of the Sarbanes-Oxley Act of 2002 (SOX), its critics are becoming more vocal. Many, in...
  • Where is HR in the boardroom?
    Issue: 2007 Second Quarter
    By Michael W. Howe
    COMPETITIVE EDGE Where is HR in the hoardroom? Too often MÎA during board deliberation on succession and leadership development. BY MICHAEL W. HOWE B oards that are "best in class" for talent development and suc- cession understand the need to collaborate with the CEO or other members of top managem...
  • Rethinking NIFO
    Issue: 2007 Second Quarter
    By Mark W. Sickles
    GUEST COLUMN Rethinking NIFO "Noses in, fingers out" may be an indefensible standard for board behavior in the post-Enron era. BY MARK W. SICKLES P RE-ENRON, directors were re- spected for the job they were in. But post-Enron, directors are only being respected for the job they're doing. To earn thi...
  • Quality listening in the boardroom
    Issue: 2007 Second Quarter
    By Myles Martel
    AT YOUR BEST Quality listening in the boardroom Are you guilty of tuning out or turning off someone who is speaking to you? BY MYLES MARTEL B ASED ON A recent survey con> ducted by our firm, 80 percent of a board member's meeting time is spent listening. Yet our research also reveals that poor li...
  • Kim Clark: Living a life of faith-based leadership
    Issue: 2007 Second Quarter
    By Jeff Benedict
    LEADERSHIP 22 DIRECTORS S BOARDS LEADERSHIP Kim Clark: Living a life of faith-based leadership A visit with the then Harvard Business School dean shows a path to success not driven by money, power, prominence, or titles. BY JEFF BENEDICT O VER THANKSGIVING IN 2004 I received a call from an old frien...
  • The devaluation of the director.
    By Trevor S. Norwitz
    GOVERNANCE LEADERSHIP The devaluation of the director Corporate America today is facing a revolution, the end game of which is management-hy-referendum — the shifting of decision-making power away from the hoard to the shareholders. BY TREVOR S. NORWITZ F OR MORE THAN A CENTURY, the COrpO- ration ha...
  • The next committee in the spotlight
    Issue: 2007 Second Quarter
    By Richard Koppes
    GOVERNANCE COMMITTEE The next committee in the spotlight Why the focus will be on nominating/corporate governance committees in 2007. BY RICHARD KOPPES, LIZANNE THOMAS, AND WILUIAM ZAWROTNY S INCE THE BEGINNING of the new era in corporate governance that began with the passage ofthe Sarbanes-Oxley A...
  • CEO pay: A new way to judge the numbers
    Issue: 2007 Second Quarter
    By Seymour Burchman
    EXECUTIVE COMPENSATION CEO pay: A new way to judge the numbers A dive into three companies' pay and performance data provides a compelling guide for compensation committees trying to determine what level of pay is 'just right' BY SEYMOUR BURCHMAN, JUDY CANAVAN, AND BLAIR JONES H ow MUCH PAY is "just...
  • The right peer group for the right pay plan
    Issue: 2007 Second Quarter
    By Scott N. Olsen
    COMPENSATION COMMITTEE The right peer group for the right pay plan Guiding principles for formulating a peer set that will withstand heightened scrutiny and promote rational pay decision making. BY SCOTT N. OLSEN AND THOMAS IM. TABACZYNSKI M ANY JOURNALISTS and compensa- tion experts have written ar...
  • Two top leaders talk succession
    Issue: 2007 Second Quarter
    By Randall S. Cheloha
    SUCCESSION PLANNING Two top leaders talk succession We asked them for lessons learned and key factors in making executive transitions successful BY RANDALL S. CHELOHA AND COLLEEN P. O'NEILL I T USED TO BE that a board member might encounter a CEO succession only once a de- cade or so. Today, that pa...
  • Directory pay in emerging firms
    Issue: 2007 Second Quarter
    By Joseph R. Rich
    DIRECTOR COMPENSATION Director pay in emerging firms A snapshot of hoard compensation appropriately tailored to the organization's stage of development^ industry, and size. BY JOSEPH R. RICH F LEDGLING COMPANIES today mUSt foCUS not only on obtaining the financial back- ing and technical expertise n...
  • Getting it right, right from the start
    Issue: 2007 Second Quarter
    By Pascal Levensohn
    EARLY-STAGE BOARDS Getting it right, right from the start Mcwy VC-backed boards experience dysfunctional behavior and often lack self-help tools to apply best practices in their governance. BY PASCAL LEVENSOHN M ORE INEXPERIENCED Corporate directors join venture capital- backed company (VCBC) boards...
  • How an advisory board drives innovation
    Issue: 2007 Second Quarter
    By Susan Stautberg
    ADVISORY BOARDS How an advisory board drives innovation Procter & Gamble offers a strong example of how to create an advisory board, how to manage it successfully, and how to apply its recommendations for bottom-line results. BY SUSAN STAUTBERG AND NANCYE GREEN H ow CAN A COMPANY Continually inn...
  • Building blocks of the GE juggernaut
    Issue: 2007 Second Quarter
    By William E. Rothschild
    LEADERSHIP Book it: Best bets for board reading From a hotelier's secret to the secret ofGE's success, from being rich to being an imperfect board member, leadership insights from a roundup of new books on business. Building blocks of the GE juggernaut From The Secret to GE's Success by William E. R...
  • What's rich? 'Twice what I am making'
    Issue: 2007 Second Quarter
    By Harry Beckwith
    LEADERSHIP of the owners will be protected, General Electric has 19 men, of whom only two (the Chairman and myself) are company executives. They are national, and come from a wide variety of businesses and industries, including education, food, ag- riculture, mining, manufacturing, marketing, bankin...
  • Looking for euphoria? Don't even bother
    Issue: 2007 Second Quarter
    By Robert J. Herbold
    LEADERSHIP of the owners will be protected, General Electric has 19 men, of whom only two (the Chairman and myself) are company executives. They are national, and come from a wide variety of businesses and industries, including education, food, ag- riculture, mining, manufacturing, marketing, bankin...
  • Something more you must provide: A relationship
    Issue: 2007 Second Quarter
    By Jonathan M. Tisch
    LEADERSHIP instruction-set-computing (RISC) technology, and its com- mitment to the emerging industry standard Unix operating system was weak. In the third quarter of 1990, earnings were off 83 percent, and the company's almost 125,000 employees meant that it had half the revenue per employee that i...
  • LEADERSHIP CHOCOLATES ON THE PILLOW AREN'T ENOUGH
    Issue: 2007 Second Quarter
    LEADERSHIP CHOCOLATES ON THE PILLOW AREN7 ENOUGH with Karl Weber and anniversary celebrations to crucial business meetings, family reunions, and once-in-a-lifetime vacations. The sheer drama of what goes on in a hotel makes the life of a hotelier inherently interesting. However, there is another mor...
  • A smart board: Necessary, but not sufficient
    Issue: 2007 Second Quarter
    By Jim Brown
    LEADERSHIP tion continues to mount at dizzying rates. Building on discipline and synthesis, the creating mind breaks new ground. It puts forth new ideas, poses unfamil- iar questions, conjures up fresh ways of thinking, arrives at unexpected answers. Ultimately, these creations must find ac- ceptanc...
  • Corporate crisis: The readiness is all
    Issue: 2007 Second Quarter
    By Dale E. Jones
    HEIDRICK & STRUGGLES GOVERNANCE LETTER Corporate crisis: The readiness is all Does your board have the competencies to meet the most common dangers? A board assessment can prepare you for these potentially ruinous'turning points.' BY DALE E. JONES C OMPANY CRISES come in all shapes and sizes — d...