Boards & Corporate Governance

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How Strategic Is Your Board?

Strategic thinking at the top of a company is more important than ever for business survival. But boards of directors have no clear model to follow when it comes to developing the strategic role for the companies they oversee. Should they supervise, cocreate or support strategy? A structured assessment of a board’s strategic responsibilities can bring clarity to its role in creating strategy, and boards should be prepared to change their role in strategy if the industry context changes.

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The Trouble With Stock Compensation

Research suggests that paying outside board members with equity grants leads to companies with less socially responsible behavior. That’s the conclusion of Yuval Deutsch and Mike Valente (both of Schulich School of Business, York University), who looked at social performance ratings and director compensation data for more than 1,100 U.S. public companies between 1998 and 2006. “Our findings suggest that there is a need to investigate more creative compensation arrangements,” they write.

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The Trouble With Too Much Board Oversight

The high-profile scandals of the late 1990s have increased the oversight duties of independent directors. Has the increased focus on board oversight improved the quality of board monitoring? And can board oversight become detrimental to desirable objectives? This article focuses on three aspects of oversight: design and implementation of suitable executive compensation packages; removal of underperforming CEOs; and disclosure of earnings that reflect the company’s true financial conditions.

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Bringing Opportunity Oversight Onto the Board’s Agenda

Boards have two broad responsibilities: overseeing the protection of existing value and creating new value. Even though most boards take growth seriously, in practice board oversight has become unbalanced. The imbalance between risk and opportunity is a potentially serious problem. Correcting the imbalance will require an active, constructive partnership between the board and senior leadership — and a board that understands how the company maintains a high level of value-creating performance.

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The Role of the Chief Strategy Officer

The Chief Strategy Officer (CSO) is a comparatively new but increasingly important role in many organizations. This article proposes a typology of four CSO archetypes – Internal Consultant, Specialist, Coach and Change Agent – who carry out a variety of responsibilities in the CSO role. By understanding how the duties of the CSO can vary significantly from organization to organization, boards and CEOs can make better decisions about which type of CSO is necessary for their leadership teams.

Image courtesy of Flickr user Sam Beebe, Ecotrust.

Why Boards Need to Change

Many companies have initiated sustainability and corporate social responsibility programs that represent good first steps toward improving the impact of their organizations on the environment and society. However, unless boards change, many of the initial sustainability efforts launched in corporations are likely to be temporary. For organizations to achieve sustainable effectiveness, they need a corporate board that is designed to lead in a sustainably effective way.

Christoph Lueneburger, head of the sustainability practice at Egon Zehnder.

What Really Goes On When Boards Talk Sustainability

Christoph Lueneburger, head of the sustainability practice at Egon Zehnder, the executive search and human capital advisory company, says that boards and executives are all talking about the issues that make up the sustainability conversation, “even if they’re not using the word ‘sustainability’.”

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Does Corporate Governance Matter?

There comes a time when corporate governance has little influence over performance, because competitive forces cut away at management fat. That's according to researchers at New York University’s Leonard N. Stern School of Business, who studied the performance of companies before and after 30 anti-takeover laws were passed in different states between 1985 and 1991.

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Showing 1-20 of 33