From Boardspan this Week:
Navigating Disruptive Risk
Unplanned leadership changes, market volatility and the totally unexpected all showed up in 2022. Disruptive risk will likely show up again in 2023. In this article from the Boardspan Library, KPMG talks about anticipating disruptive risk as your board plans for the future.
"Envisioning a company’s future is hard and imprecise work. But it’s increasingly clear that dedicating time to think about the future is vital to navigating the disruptive risks that are shaking up industries and upending business models… One of the important insights we heard was an articulation of the key challenge that these disruptive risks pose for boards today: obtaining a view or picture of the future and how that future may impact the company’s strategy. What will the business or industry look like one, three, five, or more years from now?” KPMG via BOARDSPAN
Across the Board
McDonald’s Ex-CEO Fined by the SEC for Misrepresenting His Firing
Former McDonald’s CEO Steve Easterbrook will pay $400,000 for saying that his firing was without cause, which enabled him to walk away from the company with a multimillion-dollar compensation package.
“The Securities and Exchange Commission sued former McDonald’s CEO Steve Easterbrook, charging him with lying to investors about the circumstances of his 2019 firing after the company discovered he had an inappropriate personal relationship with a subordinate… …‘By allegedly concealing the extent of his misconduct during the company’s internal investigation, Easterbrook broke [trust] with — and ultimately misled — shareholders.’” THE WASHINGTON POST
Bed Bath and Beyond is Going Bankrupt
After a rough holiday retail season and a stock price tumble, the home goods retailer warned it may declare bankruptcy. Current CEO Sue Gove is focused on rebuilding and turning around the brand.
“The retailer, citing worse-than-expected sales, issued a “going concern” warning that in the upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers. Bed Bath said it is exploring financial options, such as restructuring, seeking additional capital or selling assets, in addition to a potential bankruptcy… Bed Bath has been through an especially tumultuous stretch, with the departure of its CEO and other top executives, company wide layoffs, store closures and an overhaul of its merchandise strategy.” CNBC
Rite Aid CEO Resigns
Heyward Donigan, President and CEO of Rite Aid through its mid-pandemic rebranding and workforce shift, has stepped down. Rite Aid has named board member Elizabeth Burr as interim CEO.
“Rite Aid Corp. on Monday said that President and Chief Executive Heyward Donigan has left the drugstore chain… The company tapped board member Elizabeth Burr as an interim CEO as it conducts a search for a new leader… Ms. Donigan was named Rite Aid CEO in 2019, leading the company through the Covid-19 pandemic that put pharmacy chains on the front lines of testing and later, vaccinations. But the company has been posting wider losses over the past year as the pandemic abated and revenue plunged.” THE WALL STREET JOURNAL
Proxy Fight for a Seat on Disney's Board
“Activist investor Nelson Peltz plans to mount a proxy fight for a seat on Walt Disney Co.’s board, adding to the challenges Robert Iger faces after he recently returned to the role of chief executive at the beleaguered entertainment giant...Disney revealed the activist’s intentions Wednesday afternoon in a statement that said that it is opposed to having him join the board. It also said that current director Mark Parker would become chairman, succeeding Susan Arnold." WALL STREET JOURNAL
Business Roundtable Announces 2023 Board of Directors
Business Roundtable has names its 2023 Board of Directors, and it's quite a list!
“Business Roundtable today announced the organization’s Board of Directors and policy committee leadership for 2023.” BUSINESS ROUNDTABLE
