509 Posts Found

Neither inside nor outside directors can adequately represent shareholder interests.

Content: Article | Author: Roger L. Martin | Source: The Conference Board Review | Subject: Corporate Governance

Because of the structure of their compensation, CEOs are rewarded for share price volatility not performance. So the volatility of the past four years has served them very well indeed. To understand how, let’s model stock-based compensation in two possible worlds: A CEO whose stock has followed the S&P more or less exactly and a CEO whose stock has remained steady over the same period. … [ Read more ]

Content: Article | Author: Roger L. Martin | Source: Harvard Business Review | Subject: Corporate Governance

Seven essential questions every board must consider.

Content: Article | Authors: David Martin, Leo M. Tilman | Source: Chief Executive | Subject: Corporate Governance

To avoid politics that lurk in the shadows, get the issues out in the open with a disciplined succession process.

Content: Article | Authors: Carlos Rivero, Mark Nadler, Richard Hossack, Steve Krupp | Source: Oliver Wyman | Subjects: Corporate Governance, Succession Planning

While corporate board members take their jobs more seriously than ever, they are not necessarily as helpful or effective as they could be, says HBS senior lecturer Stephen Kaufman. He recently sat down with HBS Working Knowledge to discuss what he considers to be the biggest practical issues facing boards today.

Content: Article | Authors: Carmen Nobel, Stephen Kaufman | Source: Harvard Business School (HBS) Working Knowledge | Subject: Corporate Governance

A CEO’s schedule is especially important to a firm’s financial success, which raises a few questions: What do they do all day? Can they be more efficient time managers? HBS professor Raffaella Sadun and colleagues set out to find some answers.

Content: Article | Authors: Michael Blanding, Raffaella Sadun | Source: Harvard Business School (HBS) Working Knowledge | Subject: Corporate Governance

How to get your board back on track.

Content: Article | Author: Beverly Behan | Source: The Conference Board Review | Subject: Corporate Governance

Not everyone can—or should—get a seat at the table.

Content: Article | Author: Vadim Liberman | Source: The Conference Board Review | Subject: Corporate Governance

An old article discussing some of the complicated issues involved with pay and performance. UK-centric but addresses some universally relevant points.

Content: Article | Author: Ruth Bender | Source: think Cranfield | Subject: Corporate Governance

When voting on a merger, shareholders of the acquiring firm may not always act in the best interest of the company.

Content: Article | Author: Gregor Matvos | Source: Capital Ideas | Subject: Corporate Governance

For the most part, CEOs accept the board as their boss and as a valuable sounding board and source of input. But they don’t always get what they’re looking for from their boards. A common complaint among chief executives is that directors get into the weeds, digging into operational details that have little strategic value.

The difference between micromanaging and appropriate questioning is not always a … [ Read more ]

Content: Article | Author: Ram Charan | Source: The Conference Board Review | Subject: Corporate Governance

Use a combination of three measures — revenue growth, economic profit, and free cash flow — to set business targets, track strategy execution, and evaluate management performance. These three measures capture virtually all the high-level financial information that is important for an operating unit. As long as internal management reporting processes are designed to report these measures accurately, they provide excellent feedback on whether the … [ Read more ]

Content: Quotation | Authors: Greg Rotz, Ken Favaro | Source: strategy+business | Subjects: Corporate Governance, Finance, Management

How CEOs can turn conflict, dissent, and disagreement into a powerful tool for driving performance.

Content: Article | Authors: Ken Favaro, Saj-nicole Joni | Source: strategy+business | Subjects: Corporate Governance, Management

A study by Stanford law and business faculty members casts strong doubt upon the value and validity of the ratings of governance advisory firms that compile indexes to evaluate the effectiveness of a publicly held company’s governance practices.

Content: Article | Author: David Larcker | Source: Stanford University | Subject: Corporate Governance

When a top team fails to function, it can paralyze a whole company. Here’s what CEOs need to watch out for.

Content: Article | Authors: Judy Malan, Michiel Kruyt, Rachel Tuffield | Source: McKinsey Quarterly | Subjects: Corporate Governance, Leadership

Every business faces the opposing forces of the pull for more growth against the pull for more profitability; the demand to show profit today against the need to invest in the company’s future; and the call for optimizing the whole against the tendency of individual parts to maximize their own performance. The three performance tensions — growth versus profitability, short term versus long term, and … [ Read more ]

Content: Quotation | Authors: Ken Favaro, Saj-nicole Joni | Source: strategy+business | Subjects: Corporate Governance, Management

Looking for the best CEO? A recent study finds that efficient and persistent decision makers trump good listeners.

Content: Article | Author: Steven N. Kaplan | Source: Capital Ideas | Subject: Corporate Governance

Abstract:
We develop a methodology to collect and analyze data on CEOs’ time use. The idea—sketched out in a simple theoretical set-up—is that CEO time is a scarce resource and its allocation can help us identify the firm’s priorities as well as the presence of governance issues. We follow 94 CEOs of 600 top Italian firms over a pre-specified week and record the time devoted each … [ Read more ]

Content: Article | Authors: Andrea Prat, Luigi Guiso, Oriana Bandiera, Raffaella Sadun | Source: Harvard Business School (HBS) | Subject: Corporate Governance

For the sake of their companies—and their legacies—departing chief executives should leave things in the best possible shape. Here’s how.

Content: Article | Authors: Christian Caspar, Michael Halbye | Source: McKinsey Quarterly | Subject: Corporate Governance

Wharton finance professor Luke Taylor has heard the conventional wisdom that boards of directors often fail to do their jobs when it comes to firing underperforming CEOs. And while data shows that only 2% of Fortune 500 CEOs on average are fired each year, Taylor notes that there is no benchmark for judging whether that figure is “a lot or not enough.” To address that … [ Read more ]

Content: Article | Author: Luke Taylor | Source: Knowledge@Wharton | Subject: Corporate Governance