A paper in Law and Management by J.S. Nelson explores the support for [strong] corporate governance as a competitive advantage. On the internal front, strong corporate governance procedures are presumed to check and control agency costs…On the external front, good corporate governance procedures are presumed to enhance the strategic direction of the firm, resulting in…
Category: corporate governance
Faux Naivete From Corporate Apologists
The Hoover Institute is funded by the usual suspects in the ultra-right, climate change denial, corporate power community: ExxonMobil, Kochs, Scaifes, Donors Trust, etc. Corporate apologist David F. Larker, who does not disclose the funders of his research at the CEO-supporting Rock Center at Stanford Law School, and his colleague Brian Tayan have a new…
Alan Murray on Davos: CEOs Make Climate a Priority
Alan Murray writes in Fortune (emphasis added): Davos also forces CEOs to step back and take a broader view of their place in society. That was evident in a dinner Fortune hosted last night, where 60 global CEOs spent two hours sharing thoughts on the top risks and opportunities facing business in the decade ahead. The…
As Markets Fall, Governance Rises in Importance | Morningstar
“Only when the tide goes out do you discover who’s been swimming naked.” Warren Buffett’s famous analogy highlights how a downturn in the strength of the markets or the economy, reveals previously-hidden risks and weaknesses for companies and investors. Although many investors have recently given most of their attention to the “E” and “S” parts…
Opinion | How Sexism Influenced Corporate Governance – The New York Times
Early in the 20th century, many owners of the iconic companies of the day were women. Before the 1929 stock market crash, female shareholders outnumbered male shareholders at AT&T, General Electric and the Pennsylvania Railroad (even though the men owned more shares). But men had little respect for women’s ability to exercise their rights as…
Senator Elizabeth Warren’s Letter to the Tesla Board Chair About Elon Musk
Senator Elizabeth Warren has written to Dr. Robyn Denholm, Tesla’s Board chair, to raise questions about conflicts of interest, use of Tesla resources for Twitter, and other concerns over Elon Musk’s Twitter acquisition. The full text is below. Highlights [footnotes omitted]: Mr. Musk’s acquisition created unavoidable conflicts of interest. For example, Twitter relies on advertising…
How Can Anyone Think Fox Has Genuinely Independent Directors?
According to The Wrap: Rupert Murdoch has pledged to follow the recommendations of special committees of the Fox Corp. and News Corp. boards on his proposal to recombine his media empire. Fox Corp. said Tuesday that the special committee of the board named to evaluate the plan to bring it back together with News Corp. received letters…
Elon Musk Dissolves Twitter Board, Crowns Himself as ‘Sole Director’
This is why there’s a G in ESG — a governance risk red flag the size of Alaska. We suspect that Musk’s other equity investors will have something to say about this. Elon Musk dissolved Twitter’s board and made himself the “sole director” of the company after all previous members were removed from their roles,…
Crafting the ‘G’ in ESG: Accountability in the Boardroom | Nasdaq
Perhaps the most significant guideline that boards must follow when it comes to sustainability is a change in mindset from compliance to command. When board members see ESG as a core tenant of their governance strategy, rather than a compliance box to check off, they can go above and beyond accountability, becoming a leader in…
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