As technology’s strategic importance to the business expands, management needs stronger board guidance. Four engagement models have proven useful.
Content: Article | Authors: Isabelle Tamburro, Sidney Li, Steve Van Kuiken, William Forrest | Source: “McKinsey Quarterly” | Subjects: Corporate Governance, IT / Technology / E-Business
Our experience indicates that many boards may not have enough clarity on their roles and responsibilities. What’s needed is a deliberate process for selecting new leaders to help them achieve their goals. Using the eight questions we developed will help ensure boards are applying the same rigor and analysis in selecting the right board leader as they would for a new chief executive.
Content: Article | Authors: Dennis Carey, Joseph E. Griesedieck, Michael Useem, Ram Charan | Source: “Knowledge@Wharton” | Subject: Corporate Governance
Boards are not carving out time for high-value strategic work when it comes to environmental, social, and governance. And that’s a problem for companies pushing for sustainability.
Content: Article | Authors: David Young, Ron Soonieus | Source: “Boston Consulting Group (BCG)” | Subjects: Corporate Governance, Social Responsibility (ESG)
BCG’s AI-based Trust Index enables companies to break down stakeholder perceptions of their trustworthiness. Analyses based on the Index have yielded valuable insights about what builds, sustains, or destroys trust.
Content: Article | Authors: François Candelon, Jeff Kiderman, Marcos Aguiar, Matthew Williams, Russell Dubner, Ryoji Kimura, Sharon Marcil, Tawfik Hammoud, Wendi Backler | Source: “Boston Consulting Group (BCG)” | Subjects: Corporate Governance, Management
Corporate America continues to face a gender equity gap at its highest levels of leadership, especially for women and people of color.
Content: Article | Authors: Dominique Harris, Douglas Sandy MacKenzie, Kristen Robinson, Preethi Prasad | Source: “Kearney” | Subjects: Corporate Governance, Diversity, Human Resources
Your job as a CEO is to build fire departments, not put out fires. If you’re regularly putting out fires yourself, you’re doing it wrong. Focus your time on how to enable others on your team to put out fires themselves.
Content: Quotation | Author: Sam Corcos | Source: “First Round Review” | Subject: Corporate Governance
I think if you define fairness by “fair market value,” then C.E.O.s are paid fairly. I think if you define fairness by how you think society should value people, then I think C.E.O.s are paid too much.
Content: Quotation | Author: Dara Khosrowshahi | Source: “The New York Times” | Subject: Corporate Governance
Executive committees grapple with complex decisions and tasks, for which there might be no established rules and routines. Individual values and styles therefore play a crucial role. But the flip side is that differences among members might be difficult to reconcile. Meanwhile, both the substance and symbolism of the team’s decisions are watched closely by the rest of the organization.
Content: Quotation | Author: José Luis Álvarez | Source: “INSEAD Knowledge” | Subject: Corporate Governance
One of Hubert Joly’s proudest accomplishments is the successful CEO transition his team orchestrated when he stepped down as CEO of Best Buy. Here’s how he did it.
Content: Article | Author: Hubert Joly | Source: “Chief Executive” | Subjects: Corporate Governance, Succession Planning
Boards only see what they’re presented with and can easily become passive recipients of agendas created by powerful CEOs and senior executives. And corporate failure raises questions as to what the board knew and what more it could have done. Board members can play a transformational role in a company by asking questions that create a space for deep reflection and strategic change — not … [ Read more ]
Content: Article | Authors: Andrew White, Eric Wilkinson, Tazim Essani | Source: “Harvard Business Review” | Subject: Corporate Governance
As CEO, you are the Communicator in Chief. The responsibility for aligning all the various constituencies in the organization behind company strategy falls primarily to the CEO, but it doesn’t stop there. Just when you think you have communicated clearly to all parties, go back over your message again and again. You cannot make your point too clearly or check back enough times to make … [ Read more ]
Content: Quotation | Author: Robert Rosenberg | Source: “Chief Executive” | Subjects: Communication, Corporate Governance, Leadership, Organizational Behavior
What behavioral psychology can tell you about the human dynamics of your board.
Content: Article | Authors: Leah Malone, Maria Castañón Moats, Paul DeNicola | Source: “strategy+business” | Subject: Corporate Governance
Clawback provisions are a common feature in executive compensation packages. They are intended to deter executives from boosting their incentive compensation entitlements by taking decisions that could impose legal or reputational costs on the company. But if executives cash in their compensation and then leave the company clawbacks can be almost impossible to enforce. Requiring incentive compensation for executives to be made in restricted stock … [ Read more ]
Authors: Charles M. Elson, Sanjai Bhagat | Source: “Harvard Business Review” | Subject: Corporate Governance
CEOs have to be particularly careful about setting ambitious targets and using powerful language to motivate employees. Audacious goals can create fear (what happens if I don’t deliver?), and they may be interpreted as giving implicit permission for bad behavior.
Content: Quotation | Author: Robert Chesnut | Source: “Harvard Business Review” | Subjects: Corporate Governance, Leadership, Management, Organizational Behavior
Business scholar Tomas Chamorro-Premuzic demonstrates, women’s confidence almost always aligns with their level of competence — or falls below it — which is not usually the case with men, especially at leadership levels. This is true primarily because the number of overconfident men tends to be relatively high. And overconfidence, and the assertiveness it engenders, can be extremely helpful to someone pursuing a senior position, … [ Read more ]
Content: Quotation | Authors: Sally Helgesen, Tomas Chamorro-Premuzic | Source: “strategy+business” | Subjects: Corporate Governance, Diversity, Human Resources, Organizational Behavior, Women in Business
Companies and shareholders often focus on maximizing short-term returns. In contrast, resilience requires a multi-timescale perspective: forgoing a certain amount of efficiency or performance today for the sake of more-sustained performance in the future.
Content: Quotation | Authors: Kevin Whitaker, Martin Reeves | Source: “Harvard Business Review” | Subjects: Corporate Governance, Management
Conditions that underpin the power and impact of chief executives vary widely, with remarkable results.
Authors: Guoli Chen, Lee Seok Hwai | Source: “INSEAD Knowledge” | Subject: Corporate Governance
Stock options are both widely used and widely questioned. Research demonstrates that, contrary to stock option boosters, this form of CEO compensation is not a panacea, and there exist situations where issuing them is damaging. Indeed, now that the accounting profession has established that stock options are a real cost to business, either these expenditures should lead to real returns to shareholders or they should … [ Read more ]
Content: Article | Authors: Michael Greiner, Scott Julian | Source: “Harvard Business Review” | Subject: Corporate Governance
Have our institutions become too complex to secure?
Content: Article | Authors: Richard Horne, Sean Joyce | Source: “PwC” | Subjects: Corporate Governance, IT / Technology / E-Business, Risk Management
Three commitments to help companies promote diversity, equity, and inclusion — and resist the status quo.
Content: Article | Authors: John W. Rogers Jr., Stephanie J. Creary | Source: “strategy+business” | Subjects: Corporate Governance, Diversity, Human Resources