4 Truths About Board Leadership

The buck stops here. How do you fix board leadership? This is the $64,000 question because it’s the crux of corporate governance. If the board leadership is bad, how can the board function? And if the board can’t function, who’s watching the store?

Given the importance of the topic, there’s been a lot of ink spilt over it. Solutions have come in a bunch of flavors. Regulatory requirements is one way – having boards tap a lead director, having a certain percentage of the board be independent, having key board committees solely be comprised of independent directors.

You have pressure from shareholders and proxy advisors. Splitting the chair and CEO positions. And sometimes, there is outright shareholder activism – proxy fights, lawsuits with governance by gunpoint settlements.

Here are 4 things you should know about board leadership:

• Splitting CEO & Chair doesn’t necessarily fix anything
• Be clear what the roles are
• Independent chair/lead director accountability same as others
• A leader is a leader is a leader

For many more Vid-Guides dealing with corporate & securities law, corporate governance, E&S issues and more – particularly if you want to review any Vid-Guides referred to during this Vid-Guide – see the list of Vid-Guides spread throughout these categories:

• Corporate Governance
• Proxy Season
• Executive Pay
• ’34 Act/Other
• ’33 Act/Deals
• Sustainability/E&S
• Career Advice
• Fun Party

And since all the content on ZippyPoint.com is complimentary, please “Pay-What-You-Can” to help keep this fine platform alive & well…