The Obama administration got tougher against mergers motivated by so-called corporate tax-inversion schemes, and now the states are doing something similar by mitigating tax-haven usage. Boards will have to deal with the state-government impulse just as they’re confronting more obstacles to combinations of American companies with overseas concerns.
The top 10 Fortune 500 companies have significantly more male executives and board members than female, according to a study by eCard Shack.
Increasing board tenure positively effects market-related value, up to and including 9 years. After that, the value of board tenure deteriorates, according to a new research by QMA. The detrimental effect is stronger for high-growth firms.
Regulators are increasingly focusing on culture as a critical driver for corporate compliance, and board members should take note of this trend.
Boardrooms are facing great unpredictability and a breakdown of business models in their industries, which changes the role of directors today. We need directors who are synthesizers of information—who can see the smoke over the horizon and bring this insight into their companies.
Entrepreneurs are often advised that they should have a board of directors; but due to their lack of familiarity with such groups, they don’t understand why they need one, what they’ll get from having one, and what it will cost to assemble it.
While private companies are not required to have boards of directors, some may want to. Here are 6 reasons why having a board in a private company is a good idea.
Chief executives run the company, but the board of directors must also lead the organization on the most crucial issues. Monitoring is still important. Governance matters. But the time has come for boards to rebalance their responsibilities. Directors need to know when to take charge, when to partner and when to stay out of the way.
Need to overcome an embarrassing situation, rescue your brand from financial disaster, shift the company in a new direction or shore up some expertise in a currently weak area? It may be time to make a change to your board, as these companies are.
Boards of directors are finding themselves in a position of having to shore up their tech skills in an area where, a year ago, they didn’t have any skills at all beyond simply asking the CTO, “Is our data security working? Great. Good. Have a nice day.” Now they’re struggling simply to understand the right questions to ask.
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