Across the Board
Larry Summers Steps Down from OpenAI Board and Harvard Roles
He served on the board of OpenAI since late 2023, following the ouster and return of the ChatGPT maker's CEO, Sam Altman
“Former U.S. Treasury Secretary Larry Summers stepped down from positions at Harvard University and the OpenAI board on Wednesday amid the continuing fallout from his ties to the late convicted sex offender Jeffrey Epstein. Summers announced he was resigning from the board of OpenAI, developer of the ChatGPT artificial intelligence tool, and a spokesman later said he would discontinue teaching roles at Harvard and go on leave as a director of a business and government school while Harvard conducts a review of people named in the Epstein files’…. Summers has been under fire after the U.S. House Oversight Committee released documents detailing an ongoing correspondence between Summers and Epstein. Harvard University, where Summers is still a professor, will open a new probe into Summers' connections with Epstein, the university's newspaper reported on Tuesday.” REUTERS
Target’s $5B Gamble: Can Governance Drive a Turnaround?
As sales continue to slump, Target’s board is backing a sweeping reinvestment strategy a test of long-term oversight amid near-term performance pressure
“Target’s plan to fix its continuing sales slump involves billions of dollars in investment. Incoming Chief Executive Michael Fiddelke said the retailer would invest about $1 billion more next year to improve stores, its merchandise selection and digital capabilities, bringing total new investment next year to $5 billion…. The changes will include store experience improvements and more exciting merchandise, along with better technology and e-commerce systems, he said. In recent years, shoppers have complained of messy stores, items missing on shelves and less exciting products…. Last month, Target said it would cut around 1,800 corporate jobs, about 8% of its corporate employees, as part of its new strategy.” WALL STREET JOURNAL
Novo Nordisk Board Recast to Close Ranks
Facing falling share prices and fierce competition, Novo Nordisk’s board has been restructured by its primary shareholder
"A leadership shakeup at what was once Europe’s most valuable company was cemented Friday as Novo Nordisk’s controlling shareholder tightened its grip on the weight-loss drugmaker, even as minority shareholders express discontent. Novo has found itself in an increasingly chaotic situation as of late, with shares plunging and investor confidence waning, as its role as the leading player in the highly lucrative weight-loss space is being called into question. The maker of diabetes and weight-loss drugs replaced its independent board members, including Chair Helge Lund, after it became impossible to reach an agreement between the views of the current board and the Novo Nordisk foundation board — the company’s majority shareholder…. Another rationale for the board cull is that a new configuration would bring in more people with direct experience from a U.S. consumer perspective to help navigate the challenging market.” CNBC
AIG Reverses Executive Appointment Amid Misconduct Probe
Just days before his start, John Neal’s appointment was rescinded after revelations of an ongoing investigation into a past workplace relationship
“American International Group pulled John Neal’s appointment as the insurer’s second-in-command after it discovered his previous employer launched an investigation into an alleged workplace affair, according to people familiar with the matter. The insurance behemoth’s last-minute reversal prompted a hasty reshuffle of senior AIG and stunned many in the industry. Insurance insiders asked how an appointment of an heir apparent could fall apart days before he was set to enter the building. The stumbling block was Lloyd’s of London, the world’s largest insurance marketplace, which Neal helmed for more than six years before stepping down as CEO in January, the people familiar with the matter said…. The Lloyd’s probe focuses on the nature of Neal’s relationship with Rebekah Clement, until recently the director of corporate affairs at Lloyd’s… In 2023, Neal promoted Clement to the newly created role, reporting directly to him.” WALL STREET JOURNAL
Director Development Gets a Wake-Up Call
PwC findings show that boards are not satisfied with their own effectiveness
“Boards are entering a new era of accountability. The forces reshaping business — from AI and global markets to shifting regulatory demands — are also redefining what directors should know to lead effectively. Yet, while expectations have evolved, director development may not be keeping pace. PwC’s 2025 Annual Corporate Directors Survey reveals directors increasingly want to raise their own bar for performance. Nearly half (45%) say they plan to seek additional training on key topics, the single most common step cited for board improvement to help make their boards more effective…. Traditional onboarding typically prepares directors for the companies they join, not for the environment that each company operates in. The pace of change across markets, technology and stakeholder expectations means directors may not be able to rely on experience alone.” DIRECTORS & BOARDS
Bezos Enters the AI Arena as Both Founder and Co-CEO
Called Project Prometheus, the company is focusing on artificial intelligence for the engineering and manufacturing of computers, automobiles and spacecraft
“Jeff Bezos, the founder of Amazon and one of the world’s wealthiest people, is throwing his money and time into an artificial intelligence start-up that he will help manage as its co-chief executive. The company, Project Prometheus, is coming out of the gates with $6.2 billion in funding, partly from Mr. Bezos, making it one of the most well-financed early-stage start-ups in the world…. His new company now firmly plants him in the middle of [the AI] competition. Project Prometheus is entering an increasingly crowded A.I. market, with smaller companies trying to carve out niches in a race with industry giants like Google, Meta and Microsoft and pioneering companies like OpenAI and Anthropic.” NEW YORK TIMES
Verizon Cuts 13,000 Jobs in Its Biggest Layoff Ever
After losing confidence in its prior strategy, the board turns to Dan Schulman to refocus the business on customers, competitiveness, and AI-enabled transformation
“Verizon Communications will begin notifying employees Thursday if they are affected by its largest-ever round of layoffs, the company’s chief executive said in an all-staff email.... Verizon plans to lay off more than 13,000 employees as part of CEO Dan Schulman’s plan to aggressively reduce the company’s entire cost base. Verizon is facing fierce competition for both wireless-service and home-internet customers, and Schulman said he plans to reverse a recent trend of customer losses.... Verizon’s board named Schulman its new CEO last month after it soured on prior chief Hans Vestberg’s network-first focus. Schulman, a former CEO of PayPal, was the board’s lead independent director at the time.... In Thursday’s email, Schulman announced a $20 million reskilling and career-transition fund for employees who are leaving, aimed at preparing them for the age of artificial intelligence.” WALL STREET JOURNAL
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