PWC Director Survey 2020

This year’s PWC survey of corporate directors has some striking findings. 49 percent of the directors surveyed believe at least one of their fellow board members should not be serving. More boards are doing self-assessments but many boards are focusing on some of the easier things to change, such as adding more expertise to the…

Please Don’t Call CEO Departures for Cause “Push-Outs”

The use of the term “push-out” reveals the bias of this study, from a program largely funded by CEOs. When CEOs are promptly fired for cause, including poor performance, without multi-million-dollar departure packages. we’ll begin to talk about efficient markets. Research using the Push-out Score analysis model shows that at the start of the year,…

Was any board worse than Boeing’s in 2019? – Los Angeles Times

VEA Vice Chair Nell Minow is quoted in Michael Hiltzik’s story about the worst board of 2019. This may have been overlooked, but the Boeing board of directors did Wells Fargo a big favor in 2019; it provided Wells’ directors with real competition in the race for the worst failure of leadership among major American…

Ceres: Blueprint for Boards on Climate Risk Assessment

Some 73 major U.S. companies recorded material hits to earnings from extreme weather events in one year, while supply-chain disruptions from climate change jumped 29% over the past six years. Once again, we emphasize that ESG is not a trade-off of shareholder value; it is a more sophisticated way of assessing risk. A new report…

Crash Course — The Corporate Governance/Strategy Failures of Boeing

At The New Republic, Maureen Tkacik writes about what went wrong at Boeing and how it relates to other corporate failures: Airplane manufacturing is no different from mortgage lending or insulin distribution or make-believe blood analyzing software—another cash cow for the one percent, bound inexorably for the slaughterhouse. In the now infamous debacle of the…

Board independence revealed as key issue for investors in 2020

Two interesting things about this. First is the increased interest in independent board chairs in Europe. And the second is that for the umpteenth time we again see that ISS follows the customers at least as often as the other way around. The independence of company chairs in Europe could figure heavily in the deliberations…

Ex-Corporate Lawyer’s Idea: Rein In ‘Sociopaths’ in the Boardroom – The New York Times

We’re pleased that retired lawyer-turned novelist Jamie Gamble finally figured out that his corporate clients are “sociopaths” but believe he is creating a false dichotomy. Shareholder value does not require corporate officers and directors to ignore ethics and values; on the contrary. It is impossible to create long-term, sustainable shareholder value without scrupulous attention to…

A “Solution” That Will Make Things Worse

Professors Stephen M. Bainbridge and M. Todd Henderson acknowledge that boards of directors are not very effective, especially when the companies they are supposed to oversee are larger and more complex than any private organizations in history. But the solution they propose in their new book, Outsourcing the Board: How Board Service Providers Can Improve…