Board Turnover At WWE Could Serve Same Purpose As ‘Refreshment’
The impact of former CEO McMahon’s return on WWE’s stock price demonstrates why board composition matters.
The impact of former CEO McMahon’s return on WWE’s stock price demonstrates why board composition matters.
Directors may feel greater pressure to negotiate with activists since all shareholders will now be able to select individual director candidates for elections.
The global expert on corporate governance and board effectiveness shares her thoughts on what corporate directors can do to outshine colleagues in the boardroom.
Proactive strategies have convinced investors to scale back the number of board members they want to replace, from nine to five.
An increase of 240% means that institutional investors are, at least behind closed doors, increasingly talking about appointments of diverse groups to boards—and companies are listening.
If the court finds that companies can face significant financial damages for making unfounded claims about human capital management decisions, it will heighten boards’ level of accountability.
Shareholders will have to decide if the board chair deserves ouster for poor governance practices—or a vote of confidence for guiding the company to outsized share price appreciation.
Some might interpret the move as a statement that white directors resigning is the only way to bring diversity to the board. That’s not what this is about.
The new resolutions represent a broader set of concerns about how companies are handling human rights and civil rights issues.
The company’s board could regret parting ways former Qualcomm CEO and chairman Paul Jacobs, who was not re-nominated for his board seat.
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