Boardroom INSIDER for… AUGUST

 

WILL “COMMONSENSE” BOARD PRINCIPLES REALLY HELP?

 

(August, 2016) Corporate governance doesn’t often make worldwide news, but it did with the recent release of an open letter proposing “Commonsense Corporate Governance Principles” from some of America’s top business leaders, including Warren Buffett, Jamie Dimon, and Bill McNabb of Vanguard.

The proposals drew major media coverage for the idea that top players in both the corporate and investment communities could agree on such ideas as an end to dual-class stock, and ousting “ineffective” directors.

Yet the principles offer many more “lowest common denominator governance ideas,” according to the August issue of online monthly Boardroom INSIDER. BI publisher and board trainer Ralph Ward notes that tough issues like splitting the roles of CEO and board chair; director tenure; and proxy access “are waffled with vague language about ‘no one size fits all’ solutions.”  The best aspect of the Principles, says BI’s Ward– spelling out a positive duty for board members to communicate with investors and asset managers.

Also in the August Boardroom INSIDER:

pink How long is too long for a board chair to be in charge?
pink Tips for evaluating your board chairman.
pink Cutting the board paperwork burden.
pink Q&A: Are time wasters hidden in our board agenda?