Across the Board
Women Execs at S&P 500 Companies Hold Just 1% of Share Value
“Women account for about a quarter of the top executives at S&P 500 companies and they only control about 1% of the value of shares held among their fellow corporate leaders, new research shows. The disparity means male executives held about $770 billion worth of shares in S&P 500 companies in 2020, compared with about $9 billion for female executives, said Andreas Hoepner, a professor of operational risk, banking and finance at the Smurfit Graduate School of Business at the University of Dublin. The study, conducted with Swedish gender data company ExecuShe, found the ratio was skewed even after removing company founders and outliers like Tesla Chief Executive Officer Elon Musk, the wealthiest executive in the index, he said.” BLOOMBERG
Opinion: That Starbucks Doesn’t Have A Single Internal Candidate for CEO Is A Board Failure
“On Monday, Howard Schultz, Starbucks' chairman (and former U.S. presidential candidate), told The Wall Street Journal that the company wasn't considering any internal candidates for its next CEO appointment. Think about that for a second. Of the many thousands of managers and executives in the company -- and the tens of millions of dollars the company proudly spends on leadership development -- the Starbucks board has determined and publicly announced that not one single person in the company is capable of being promoted internally to fill the CEO spot. Leadership development is the opposite side of the same succession planning coin. Starbucks has failed on both sides. That's a major, board-level meltdown. Heads should roll….” INC
Why Supply Chain Should Stay at the Top of Your Board Agenda
“Boards have really got to be hyper focused on providing the right level of governance—challenging management and giving guidance to management—around what they’re doing regarding the supply chain. If Covid-19 showed us anything, it’s that supply chain resiliency and supply chain sustainability are key… And the role of the board is to understand what is the company’s strategy around its supply chain network. What is your level of transparency? How can management make things transparent enough, so directors know what you’re monitoring and how you’re ensuring that you’ve got the right level of resiliency?” CHIEF EXECUTIVE
Is Your Board Prepared for the SEC’s Climate Proposal?
“The [SEC climate disclosure] proposal raises the bar with respect to board governance and has substantial implications for boards in their oversight of climate-related risks and, if applicable, climate-related opportunities…. First and foremost a board must decide, if it has not done so already, whether the full board or a particular board committee is responsible for the oversight of climate-related risks…. The board’s role in setting targets or goals related to climate-change matters and its oversight of this area are two additional disclosure requirements that will take some thought, as well as time, to be appropriately included in materials… so that they can form the basis for the disclosure that will be included in the company’s SEC filings.” CORPORATE SECRETARY
Hasbro Shakes Off Activist Challenge, Re-elects 13 Directors
“Hasbro has fended off a board challenge from an activist investor that wanted to shake up its board and spin off the toymaker’s lucrative division that includes Dungeons & Dragons. On Wednesday, the Rhode Isand-based company said its shareholders voted to reelect its 13 directors by a ‘substantial margin,’ according to preliminary vote tallies.” CNBC
Icahn Drops Animal Welfare Fight Against Kroger
“Carl Icahn has decided to drop his proxy fight against Kroger over the treatment of pregnant pigs, the billionaire investor said on Monday, days after losing a similar battle at McDonald's. Icahn is withdrawing his nominees to Kroger's board, he said in a statement to shareholders of both the companies. The activist investor nominated two directors to the supermarket chain's board in March, a month after taking on McDonald's….” REUTERS
From the Boardspan Library
Board Members: Are You Thinking Like an Activist Investor?
“The growing drumbeat of investor activism isn’t just a trend; it’s a fundamental change in relationship between shareholders and companies. The past decade has seen activist investors pursuing more than 2,000 campaigns to redirect business strategies, activities, and resources, about 40 percent of which involved some form of merger or acquisition. In many cases, the activists actually forced assets into play….Activists increasingly are coming prepared with ideas for growing shareholder value and improving business performance….Nevertheless, board members shouldn’t wait for activists to make moves….The board and management should work together to understand activists’ interests and motivations, recognize factors that can cause them to take action, and respond swiftly and decisively if an inquiry surfaces….” DELOITTE via BOARDSPAN