Across the Board
How Boards Can Use Compensation to Support Succession Planning
"Most boards have annual succession planning discussions and robust procedures to prepare for a transition. But, recognizing both the shrinking of leaders’ tenures and the shifting skill sets needed for future success, many boards are now making succession planning a continual process… Compensation sends important signals, both intended and unintended. Choices about pay should support the motivation and retention of leading candidates as well as individuals in key supporting roles…A change in leadership may also present a transition to a new business strategy and management style, which should be reflected in the compensation design, including the choice of incentive measures, the types of long-term incentive vehicles granted, and how goals are set.” HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
U.S. Cybersecurity Agency: Boards Need to Drive Cyber Defense
“Corporate boards need to propel companies’ investment in cyber defenses and push management to treat hacking threats as a core business risk, according to a top official of the U.S. Cybersecurity and Infrastructure Security Agency. Businesses face growing hacking risks, yet cybersecurity still isn’t as ingrained in corporate thinking as it needs to be, said Brandon Wales, the agency’s executive director, speaking on Tuesday at the Wall Street Journal’s CIO Network Summit ‘This needs to be driven at the board level,’ he said. ‘You don’t want to start thinking about cybersecurity after your network has been brought down by a ransomware operator.’” WALL STREET JOURNAL
Empty DEI Promises Can Lead to Litigation Against the Board
“If your enterprise doesn’t set ESG or DEI goals, you risk being left behind as millennials and Gen Z take their dollars elsewhere. But as companies make ESG and DEI commitments that promise to benefit more than just their financial stakeholders, they may be opening themselves up to increased professional liability risks…If a firm fails to fulfill its promises they may be faced with shareholder derivative lawsuits from investors alleging that the company’s directors and officers lost the company money with their poor governance.” RISK & INSURANCE
How to Ensure More Women In the Boardroom
“…Without a changed mentality on how to support women in the workforce throughout their careers—one that helps elevate them to leadership and executive roles—we’re unlikely to see significant progress for women [in the boardroom]…. Here are ideas—some of which we’ve incorporated at PwC—for where to start: (i) Foster career development: Design programs that help engage, motivate and retain diverse talent…. (ii) Build flexibility into benefits: There is not a one-size-fits-all approach to navigating responsibilities outside the office. (iii) Create upskilling opportunities: Create more learning and development experiences for women and ethnically/racially diverse executives…. (iv) Promote allyship: Engaging the majority to advance women in the workplace is also fundamental to change by fostering understanding and providing training to help your people lead candid conversations and engage in acts of inclusion and allyship by leveraging their own privilege to help support women.” HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
Latinos Underrepresented on Corporate Boards
"Latinos are the second largest demographic population in the United States, but they are vastly underrepresented on corporate boards, according to a new report by the Latino Corporate Directors Association. ‘Sixty-five percent of Fortune 1000 companies lack Latinos, and Latinos are seeing the least growth of any other group,’…It’s even worse for women. According to the report, Latinas are have just 1% of board seats on Fortune 500 companies…On Wednesday, Nike announced that Monica Gil, chief administrative and marketing officer of NBCUniversal Telemundo Enterprises, would join its board.” CNBC
From the Boardspan Library
How Boards Can Create Inclusive Cultures for Organizations
"Research shows the benefits of diversity, and shareholders, employees, customers and business partners are increasingly pushing for their organizational leadership to better represent the demographics of the general U.S. population…This is a welcomed start to still a long journey to increase diversity on boards, but it’s only one part of the equation. Focusing on diversity without also focusing on inclusion is not a winning strategy. While inextricably linked, diversity and inclusion are not one and the same. And in the most inclusive organizations, inclusion is seen as critical to business strategy.” CORPORATE COMPLIANCE INSIGHTS via BOARDSPAN
