3/2/23 – Issue 8.07 – Your weekly news on all things board. 

One legacy ends, another stays alive with positive news despite a rough year. Doug Parker, the long-serving CEO and current Chairman of American Airlines, is retiring. Taking the helm 10 days before the September 11 attacks in 2001, Parker successfully steered American through that crisis and others and helped grow  the airline into the largest in the world. And Marc Benioff, the driving force behind Salesforce, has faced heavy criticism lately about the direction of  the company. Nonetheless, this week’s earnings call announced strong projections and some bold reorganizations.

Join us for our first webinar of the year: Abby Adlerman in conversation with Tarang P. Amin, the Chairman and CEO behind e.l.f. Beauty’s extraordinary success. 

In other news, the former Airbnb Chief Ethics Officer talks about the power of real diversity; Fox Entertainment’s executives and board face claims that they knowingly reported false election news; and the Economist looks at the increasing demands on board members.  

In the Spotlight

American Airlines Chairman to Retire

After over two decades as CEO, Doug Parker announces his retirement.

“Doug Parker, a deal maker who helped build American Airlines Group Inc. into the world’s largest airline, is retiring from the carrier’s board, closing a chapter in his decades-long career in the industry. Mr. Parker stepped down as American’s chief executive last year, handing the reins to then-President Robert Isom. Greg Smith, a former Boeing Co. chief financial officer who joined American’s board last year, has been named independent chairman, effective April 30, American said…”. THE WALL STREET JOURNAL

Marc Benioff Announces Disbanding of Board’s Mergers and Acquisitions Committee
The founder and current head  of Salesforce has had his share of challenges recently, from investor attacks to a layoff of thousands.  But the company’s latest earnings call contained some positive projections and a new focus on the company’s existing business.  

“Bowing to activist investors, Salesforce CEO Marc Benioff signaled that the firm’s days of spending big bucks to buy other companies are over, at least for the time being…During Wednesday’s call, Salesforce projected a sharp rise in its operating profit margins for the coming year, exceeding analyst forecasts as well as its own prior guidance. Shares of Salesforce jumped 15% in after-hours trading….” FORTUNE

From Boardspan this Week:

UPCOMING WEBINAR: How a Strong Board/CEO Relationship Led to Success 

What helps build a legacy for a CEO, a board, and an organization? Strengthening the relationship between the Board and CEO so trust, alignment, and communication can guide the right strategic decisions. 

Tarang P. Amin, Chairman and CEO of e.l.f. Beauty, not only knows that secret to success, he achieved it, with an incredibly diverse board that helped lead the company to a 50% stock price increase. Join him in conversation with Boardspan CEO Abby Adlerman to hear how he did it. Click below to register.

The Board and the CEO: How a Strong Partnership Leads to Success

Wednesday, March 29

2pm ET

Across the Board

The Real Reason You Should Have a Diverse Board

e.l.f Beauty, featured in our upcoming webinar, has one of the most diverse boards on the New York Stock Exchange. That’s a huge factor in their success. In the piece below, the former general counsel and Chief Ethics Officer of Airbnb weighs in on why board diversity is about more than just numbers. 

"Quotas can make a difference: The number of board seats held by women in California more than doubled since the state passed its 2018 law. But they are not a magic wand…General counsel need to talk with their CEOs, and board members, to discuss diversity in the context of their company’s mission and specific needs. Think about your board culture. Are diverse board members working together as a team, encouraged to speak up and share their thoughts? Challenge yourself to define where you have holes in “diversity of thought,” and consider how you create the right board culture to get the most out of the diverse talents that you’re bringing to the table.” BLOOMBERG LAW

Fox’s Board Questioned

Fox’s board of directors is reckoning with potentially damaging allegations by Dominion Voting Systems that it knowingly spread election untruths. 

“The Fox Corporation board has a huge mess on its hands — and it needs to work quickly to clean it up. That’s according to Jeffrey A Sonnenfeld…Sonnenfeld told CNN on Tuesday that the dramatic revelations brought to light by Dominion Voting Systems’ $1.6 billion defamation lawsuit against Fox News — showing it knowingly peddled election lies to its audience — are cause for serious concern that could threaten the parent company. The filings, he said, showed members of the Fox Corp board had failed to act to prevent misconduct by Fox executives, and warned the disclosures will result in ‘likely’ shareholder lawsuits, a possible SEC investigation into ‘deceptive practices of the board for conspiring to conceal known misconduct with material adverse impact,’ and the potential loss of insurance protection for the company’s directors and officers.” CNN

Corporate Boards are Facing Intense Demands

Seven of the ten employee representatives on the board call it quits. 

“In the popular imagination, a corporate board seat looks like the cushiest sinecure in business. Board members appear to get paid—often handsomely—to attend a few meetings a year and to nod knowingly as the chief executive pontificates on strategy. They seldom make the news unless the occasional tut-tut results in the CEO being shown the door, or an activist investor campaigns for a seat at an iconic company (as has happened in recent months at Disney, Salesforce and Tesla). Once the errant boss is out or the activist campaign is over, either because it succeeded or, as in Disney’s case, the challenger is placated with concessions, the board slinks back into comforting obscurity.” THE ECONOMIST

Seat at the Table 

• Boardspan congratulates Bradley Strock, former Global Chief Information Officer at PayPal, on his appointment to the board of savings firm Ascensus. Boardspan is delighted to have advised Ascensus on this placement

• Boardspan congratulates Mark Sachleben, Advisor at software company New Relic, on his appointment to the board of financial software platform MeridianLink. Boardspan is delighted to have advised MeridianLink on this placement

• California energy company PG&E welcomes to its board Edward Cannizzaro, former Global Head of Quality, Risk, and Regulatory for professional services firm KPMG

• Insurance firm AIG elects to its board Diana Murphy, Managing Director at private equity firm Rocksolid Holdings; and Vanessa Wittman, former CFO of beauty company Glossier

• Cloud applications manager Workday announces to its board Mark Hawkins, former President and CFO at Salesforce

• Real estate investment trust Veris Residential appoints to its board Ronald Dickerman, Founder of Madison International Realty; and Stephanie Williams, President of property management company Bozzuto

• MetLife elects to its board Jeh Johnson, Partner at law firm Paul, Weiss, Rifkind, Wharton & Garrison

• Residential furniture company La-Z-Boy welcomes to its board Mark LaVigne, President and CEO of battery manufacturer Energizer Holdings

• U.S. Steel adds to its board Alicia Davis, Chief Strategy Officer at automotive seating supplier Lear Corporation

• Internet retailer Overstock elects to its board Joanna Burkey, Chief Information Security Officer at HP

About Boardspan
Boardspan is the leading provider of digital governance solutions for boards across all sectors. Our cloud-based assessments, benchmarking analytics and governance education programs complement our board search and advisory services to deliver a holistic approach to governance. Boards of all sizes and stages rely on Boardspan to deliver analytics, insights and outcomes that improve their effectiveness and performance. Clients include KKR, The Kellogg Foundation, Ingersoll Rand, Farfetch, McAfee, Beyond Meat, Box, e.l.f. Beauty, Satellite Healthcare and the U.S. Olympic & Paralympic Committee.