Across the Board
Linda Yaccarino Steps Down as CEO of X
Her departure follows the merger of Elon Musk’s xAI with X
“Linda Yaccarino said she is stepping down as chief executive of X, capping a tumultuous run atop Elon Musk’s social-media company. Yaccarino’s future at the company had been uncertain for months. Musk merged X with Grok chatbot maker xAI this spring, fusing two of his technology bets and making the social-media platform part of a broader AI-focused company. The high-growth potential of artificial intelligence became more important to investors than the tighter-margin social-media business overseen by Yaccarino…. Yaccarino told people close to her that the recent return of some advertisers and the merger, which made X a smaller revenue contributor, made it a good time to depart.” WALL STREET JOURNAL
Tesla Investors have a Message for Elon Musk: Stay Away from Politics
Musk’s political pivot sparks market backlash, highlighting investor fatigue with unpredictable CEO behavior
“Tesla’s board of directors was urged to put its foot down and rein in CEO Elon Musk after the electric car maker’s stock tanked following the mercurial mogul’s vow to launch a rival political party… Wedbush Securities analyst Daniel Ives penned a bluntly worded note on Tuesday calling on the board to ‘act now’ and establish formal boundaries around Musk’s political activities, warning that his increasing entanglement in Washington could threaten the company’s future…. Ives laid out a three-point plan for the Tesla board to keep Musk at the helm through 2030. It includes: (1) A new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” which would be drawn up by a special board committee. (2) Establishing clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation. (3) Creating a dedicated oversight committee to monitor Musk’s political activities to determine whether any of them interfere with his duties as CEO.” NEW YORK POST
Nestle Chair's Exit Followed Rising Unease Over Direction
Investor discontent over post-pandemic performance and a CEO-to-chair transition model prompts leadership change
“Nestle's recent announcement that Chairman Paul Bulcke will step down followed rising investor unease over the food group's share price, the tenure of previous CEO Mark Schneider and concerns its corporate governance model was out of date, investors told Reuters. Support for Bulcke, 70, was ebbing away due to doubts about Nestle's recovery after the pandemic, when sales volumes flagged in 2023 as the world's largest packaged food maker increased prices to offset rising raw material costs… There was also discontent over Bulcke's loyalty to Schneider during that tough period, as well as Nestle's practice of making former CEOs chairmen, they said. Schneider was eventually ousted last August and replaced by Nestle veteran Laurent Freixe. The maker of Nescafe instant coffee and KitKat chocolate bars said on June 18 that Bulcke, CEO from 2008 to 2016, would step down as chair in April 2026…. His departure will mark the end of a near 50-year career that saw him rise from marketing trainee to the very top.” REUTERS
Getting CEO Succession Right
Avoiding common pitfalls—especially CEO reluctance—requires early planning and strong CHRO support
“CEO succession is one of the board’s most sensitive, high-stakes responsibilities. It’s not just about selecting a new leader—it’s about safeguarding the company’s future, preserving the outgoing CEO’s legacy, aligning diverse stakeholders, and maintaining confidence across the organization and the market. This report outlines 10 of the most common challenges boards face in CEO succession—and how a trusted CHRO can help avoid or resolve them. Based on in-depth interviews with board directors, investors, and succession experts, as well as findings from a national survey of corporate directors, we offer a practical board-centric perspective on strengthening CEO succession with critical CHRO support.” HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
Beyond Pay: The Expanding Role of Compensation Committees
The compensation committee's mandate is evolving—and so is the skill set required to lead it well
“Compensation committees have come a long way since their origin. Whereas they traditionally, and exclusively, discussed executive pay, many committees today are vital partners on a wide variety of talent, performance management, culture, leadership development, and oversight issues. Broadly, these topics all fall under the umbrella of human capital management (HCM)…. In the face of rapidly developing technological, regulatory, and societal shifts, boards are finding it essential to expand the scope and practice of corporate governance beyond the executive ranks. While this might have been unthinkable a decade ago, changing the compensation committee’s mandate to include HCM issues is a natural extension of previous duties.” HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
TVA Board Set to be All-Male, All-White
As corporate boards diversify, a federally owned utility doubles down on homogeneity—drawing renewed scrutiny
“The Tennessee Valley Authority Act of 1933, the legislation that created and governs the federal utility, mandates the U.S. president seek qualified candidates for TVA's board of directors who "reflect the diversity" of its seven-state service region. On Tuesday, President Donald Trump nominated four white men to join the three white men he left on the board after firing the only two female directors. While checking a box for geographical diversity -- one of the nominees, Randy Jones, is from Alabama -- Trump's picks would change the makeup of a board that has typically had non-white and non-male directors. TVA has walked back diversity efforts in response to Trump administration guidance, which has chilled corporate diversity programs across the nation.” CHATANOOGA TIMES FREE PRESS
Bringing Business to the Non-Profit Boardroom
For non-profits, the inclusion of for-profit executives brings valuable expertise, networks and decision-making capabilities that can elevate their professionalism and impact
“It must be flattering to be offered a seat on the board of a non-profit organization (NPO). After all, the non-profit sector has long valued for-profit executives for their business acumen, result-orientation and decision-making abilities. The appeal to serve on the board of an NPO may be an emotional one: service and meaning…. They advocate for accountability, counterbalance profit-driven motives, mediate between stakeholders, complement government services and even foster social innovation. At the same time, non-profits have reached a transformation moment. As public donations shrink – a trend now accelerating with recent shifts in aid policies by the United States and Europe –non-profits must take a proactive approach by refining their priorities, strengthening operational resilience and preparing for future shocks. But to achieve these, NPOs need strong leadership and effective governance. This is where the board comes in.” INSEAD
|
|
