Director's Domain: Corporate Governance News & Board Insights
Staying informed is key to your success as a board member. Our newsletter is an ideal ally.
Boardspan delivers curated board news and governance insights to your inbox, so you can keep on top of the issues and head into the boardroom informed.
Subscribe now. It's free!
Visit the Director's Domain Archives
March 14, 2024
As a vote to force either a sale or a ban of TikTok passes in the House of Representatives and heads to the Senate, it raises questions: about national security, free speech, data privacy, and the economic impact of a U.S. ban on a business that generates millions in ad revenue and in income for creators. If it passes, the bill–which has both bipartisan support and opposition–would give Chinese company ByteDance six months to find a U.S. buyer. Who would buy TikTok? Who wins if it’s banned? And how would a U.S.-based owner and board address the complex governance issues that continue to exist around sensitive data and bad actors? The bill is the latest example of geopolitical issues affecting business, and another reminder of how data, algorithms–and soon AI–can make businesses and boards vulnerable if governance is lacking.
In other news, Sam Altman is back on OpenAI’s board; The new SEC climate regulations are here; the Economist looks at women on corporate boards; and a path to better ESG strategy.
Read OnBrowse Our Most Recent Issues
March 07, 2024 -
The world is awash in lawsuits and claims related to Elon Musk right now. Former Twitter executives are suing Musk over unpaid severance, and the lawyers who got Musk’s mammoth pay package struck down are seeking $5.6 billion in Tesla stock as payment. But the biggest suit this week might be Musk’s own against OpenAI, where he claims that by creating a for-profit arm, the company is going against its foundational mission. Musk, who helped found OpenAI in 2015, claims the company’s technology is now too powerful to be owned by any one entity. Skeptics say Musk is trying to ensure that only one entity profits from AI (himself). But he raises interesting questions: How powerful is AI at the moment? And when does the mission of ensuring its ethical use begin to run counter to a company’s mission of profitability and shareholder value? These are questions that will become more urgent as the world’s largest tech companies begin to develop their own versions of generative AI technology.
In other news, McKinsey looks at the rising complexity of board work; GE Vernova’s spin-off; Lessons from Harvard’s board turmoil; and the increased focus on internal audit.
Read OnFebruary 29, 2024 -
Boards and companies have long known that federal and state climate disclosure rules are on the horizon. But as the release of the SEC’s climate risk disclosure rule draws closer, we may see some last-minute changes in its scope. Politico reports that the rule, expected to be released in a matter of weeks, may be pared back in response to backlash from business lobbyists and Republican lawmakers. Much of the debate centers around Scope 3, which requires companies to disclose information on emissions generated by customers and suppliers. At the same time, a new survey finds that companies feel the most pressure to decarbonize from their boards, not from customer or regulatory pressure. And Harvard moves forward to decarbonize its supply chain, aiming to be fossil-fuel neutral by 2026 and free by 2050.
In other news, the battle for the Norfolk Southern board; Reddit files for IPO; the 2024 Proxy Season preview; and Abu Dhabi's largest firm adds an AI-powered board observer.
Read OnFebruary 22, 2024 -
Carl Icahn turned 88 this week, but that wasn’t his only notable activity. His firm secured four seats on two different boards: JetBlue and American Electric Power. Icahn’s activism is the latest chapter in JetBlue’s turbulent last few months, which saw CEO Robin Hayes resign and the company’s merger plans with Spirit Airlines collapse. As JetBlue continues to find its way, it’s no surprise that activists have taken notice. Many will remember that one of Icahn’s most infamous activist campaigns was taking TWA private in the 1980s. With a new CEO dedicated to “aggressive action” to make JetBlue profitable again and Icahn’s 10 percent stake in the company, where JetBlue goes from here should be interesting to watch.
In other news, big firms pull back further on ESG; does NVidia’s success signify an AI tipping point?; Arkhouse swings and misses for a majority seat at Macy’s; and a look at the S&P 500’s CEO compensation trends.
Read OnFebruary 15, 2024 -
Elon Musk publicly trounced Delaware last week as a state whose incorporation regulations are unfriendly to business. Though his comments came on the heels of a Delaware judge voiding his massive compensation package at Tesla, other companies and their shareholders are talking about reincorporation in states like Texas and Nevada, who are thought to be more casual in their oversight of public companies. Have board members been hearing rumblings of reincorporation? Will this be the next wave of shareholder activism? Or is this just the temporary ripple effect of a decision that didn’t go Tesla’s way? Two different pieces this week take a look at the views around reincorporation.
In other news, Costco’s longtime CFO steps down; Disney gears up for an expensive proxy fight; Walmart in talks to buy Vizio; and what public company boards can learn from private equity boards.
Read OnFebruary 08, 2024 -
Board members and the media alike are asking the same question this week: What is going on at Tesla? The Wall Street Journal obliged our curiosity by publishing a detailed story about Elon Musk’s relationship with his board at the automaker. The piece describes every facet of the Tesla board relationship, from the mundane to the outrageous. Other articles this week offer more information about the battle over Musk’s massive compensation package. Is the governance situation at Tesla sustainable? Time will tell.
In other news, activists strike yet again at Disney; how corporate boards can prepare for a new administration; Adam Neumann pops up again to bid for WeWork; and the future of ESG in 2024.
Read On