Requirements for Effective Boards…Beyond Fine Tuning

As CEO, you’re accountable for results whether your board helps or hinders you in working toward them. Ensuring that key requirements are met, requirements that affect how well equipped board members are to work together, will provide a sound foundation from which the strategic leadership and fulfillment of role and responsibilities will more likely occur. These requirements go beyond fine tuning…they are essential.

This article is … [ Read more ]

Mmmm … $10 Million Bonus

Their stocks are on a crash diet, but plenty of executives are still gorging like it’s 1999. Here’s how to find out whose face is in the trough.

Your Board’s Approach to Its Responsibilities: Resting on Laurels or Raising the Bar

The CEO is often in the role of challenging the board to fill its role and add value to the organization. This article is the third in a series intended to help the CEO think through the issues involved in developing a board to contribute meaningfully to the purpose, vision, strategy and development of the organization.

Directors’ Compensation: Cash Laughs Last

Bear markets ate up many fat compensation packages. So now cash is a bigger piece of the pie.

Your Board: Proactive Partnering or Reactive Interference?

Part 2 of a series on the emerging trends of board development. The purpose of this series is to give CEOs background in the issues to help them determine whether and how to approach the challenge of developing the board.

Corporate Governance Audited

The audit function has often been neglected in the corporate governance discussion—it is time to give it new attention!

Diversity in the boardroom?

The question of the desirablity and value of board diversity is not new. Yet there can still be disagreement as to the scope and goal of diversity and the way in which this should be achieved.

Chartered director programme: certainly not a soft option

There are several senior positions you can hold without any formal qualifications – senior manager, parent and prime minister, for example. You can also be a company director without undergoing any real training. In the UK, however, a growing number of senior executives are submitting themselves to an exhausting and rigorous process which allows them to call themselves chartered directors. The Institute of Directors, which … [ Read more ]

Are CEOs Underpaid?

Eamonn Walsh looks into the effects of executive incentives on corporate performance.

Editor’s note: Let me count the ways this analysis is flawed…

Also Note: you can read the article on the web page, but for a bigger font and to get the graphics referenced, read the .pdf version instead (link on the right side of page).

Oh, the Games Enron Played

The dramatic disintegration of Enron has left a lot of people wondering how this huge, publicly-traded company could have fallen so far so fast. Wharton faculty and others help explain what went on behind the scenes at Enron, where it is now clear that management exploited loopholes in accounting procedures and created questionable partnerships involving top company officials, among other tactics.

Class Struggle

Companies are being pressured to eliminate classes of stock with supervoting rights.

Shareholder Rights and Corporate Performance

Corporate boards have long used such techniques as poison pills and anti-greenmail to stave off hostile outsiders. But shareholders’ organizations say such anti-takeover techniques are really meant to protect bad executives. Wharton finance professor Andrew Metrick and two colleagues examine which side has the better claim.

CEO Encores: When Leaders Return to Bail Out Their Companies

Steve Jobs, Paul Allaire, Henry Schacht, Lawrence Bossidy, Kenneth Lay and Ted Waitt all, for one reason or another, left the top jobs at their companies only to return later when the companies ran into difficult times. Does it work to bring back former CEOs in such circumstances? What are the risks? And what does it say about the companies’ boards?

The Fading Appeal of the Boardroom

Demand for outside non-executive directors is rising even as the supply of them is shrinking. Time for an increase in their pay?

Corporate Reform in the Developing World

Advocates of more effective corporate governance have been focusing on corporate reform at the expense of institutional reform. Now is the time to change tactics.

‘This Stuff Is Wrong’

“A good name for every compensation consulting firm would be Ratchet Ratchet & Ratchet. Any other kind of consultant you can think of is brought in to try to cut costs. The basic goal of compensation consultants is to justify whatever it is the CEO wants to make. After all, who’s going to recommend these consultants to other CEOs? Not the little old lady in … [ Read more ]