Directors & Boards articles from January 2008

Directors & Boards archives from January 2008

Penned from Phnom Penh.(LETTER FROM THE CHAIRMAN)
January 1, 2008... SITTING IN THE Foreign Correspondents' Club in Phnom Penh, I began to write my Publisher's Letter. This Christmas my family and I visited Southeast Asia. The bustling streets and crowded marketplaces evidence the economic boom of this region....

Transitions 101.(EDITOR'S NOTE)
January 1, 2008... SUCCESSION PLANNING is not a market," but if it were we could easily say that the crisis in the credit markets this past year instigated a companion crisis in the succession planning market. It's shocking how unprepared certain...

Alignment strikes out: this screwball notion never stood a chance--at least not with Yankees manager Joe Torre.(QUIDDITIES)
January 1, 2008... IN OCTOBER, the New York Yankees offered manager Joe Torre a contract for 2008, providing for a base salary of $5 million (vs. $7 million the previous year) plus "incentives" of $1 million a pop should the Yankees win the American League...

Two outrageous tales of outsourcing: hiring outsiders to evaluate executives sets a new high standard for buck-passing.(SUTTON'S LAWS)
January 1, 2008... GLAXOSMITHKLINE finally picked its next CEO, going for Andrew Witty. This publicly announced succession contest pitted David Stout and Chris Viehbacher against Witty for the job. They're all internal candidates and presumably the company's top...

Balancing acts: for directors, the virtue of independence should be leavened with the strengths of industry knowledge and experience.(LEGAL BRIEF)
January 1, 2008... THE CURRENT DIALOGUE on directors' roles has largely focused on the value of independence, particularly for public company directors, who are seen as the protectors of the stockholders' interests against the otherwise unchecked self-interest of...

D & O liability dangers outside the U.S. borders: in foreign venues, individual risk can be amplified. Here are some questions for your chief risk officer.(RISK MATTERS)
January 1, 2008... AS A DIRECTOR, you are at greater risk of a foreign directors and officers (D & O) liability lawsuit today than ever before, and your financial exposure is growing. The adoption of new laws by countries outside the United States, as well...

The enemy: compliance fragmentation; Automate, centralize, and coordinate your way to an improved GRC process.(CORPORATE ACCOUNTABILITY AGENDA)
January 1, 2008... IN TODAY'S GLOBAL ECONOMY, a decentralized and fragmented approach to risk management can lead to serious liabilities and unanticipated compliance gaps. Operating in multiple countries and regulatory jurisdictions, where no single, uniform...

Managing the black ink and red flags of FX: quantifying foreign exchange risk is harder than you think.(COMPETITIVE EDGE)
January 1, 2008... AS A BOARD MEMBER of a multinational corporation, are you being told that the weak dollar has resulted in increased corporate revenues and profits? Today, the multitude of risks associated with foreign exchange exposure has largely been...

The other private equity: despite the credit crunch, growth equity spurs innovation, promotes economic growth, and builds strong public companies.(BIG DEAL)
January 1, 2008... THE RECORD PACE and volume of "going private" transactions over the past couple of years made private equity a household phrase--one most associated with leveraged buyouts (LBOs) of publicly traded companies. While the credit crunch has...

Big fish, little pond: how large-company execs best fit into smaller businesses ... and their boardrooms.(BOARD LEVERAGE)
January 1, 2008... IN MY 20 YEARS in business I have worked for, interacted with, and assessed many CEOs and managers in dozens of companies across a range of industries--large and small, public and private. Much of my energy over the years has been focused on...

Top 10 ways to avoid trouble in China: on 'being yourself'--not!--and other ways Westerners are advised to tread with care.(GLOBAL LEADERSHIP)
January 1, 2008... CHINA BOASTS the world's fastest-growing economy, offering a wealth of opportunities for investors who are prepared to participate in markets that are a world away from American culture. Here are the most common mistakes that Westerners make in...

A postcard from the edge; Dad's message: 'Corporate America is in trouble, and it's time for a change!' Remembering Stanley Foster Reed (1917-2007), founder of Directors & Boards.(IN MEMORIAM)(Obituary)
January 1, 2008... ON OCTOBER 25, 2007, at 3:25 P.M., my father, Stanley Foster Reed, took his last breath. An attending physician put it well: "To die peacefully at 90 surrounded by loved ones after a full life... It doesn't get better than that." The...

Why so many companies fail at succession; A focus on three circumstances that can cause self-destructive behavior in leader selection, even for the well-managed companies: the style of the incumbent CEO, rapid growth, and strategic inflection. What's a board to do?(Cover story)
January 1, 2008... EVERY YEAR for the past five years, the consulting firm of Booz Allen Hamilton (BAH) has conducted a survey of the world's 2,500 largest public companies, attempting to develop a clear picture of the phenomenon of executive turnover. BAH's...

Be strategic about board composition: it is naive to assume that all directors are equally capable in every respect. Boards need to be built on multiple diverse talents and perspectives to execute their responsibilities effectively.
January 1, 2008... BOARD COMPOSITION is the cornerstone for enlightened corporate governance. I believe a smartly composed board is the most pivotal tactic for making boards more independent and effective. Board composition is the foundation for venturing beyond...

Worried about your global partners? If implemented properly, investigative due diligence is unsurpassed as a low-cost, high-value tool in learning about a company's overseas connections--particularly in light of stepped-up enforcement of the Foreign Corrupt Practices Act.(GLOBAL BUSINESS)
January 1, 2008... THE UNITED STATES government has dramatically stepped up enforcement of the Foreign Corrupt Practices Act (FCPA), the law that prohibits bribes and improper payments to foreign officials by U.S. companies and non-U.S. companies traded on U.S....

Setting executive pay in the 'hard spot'; The big challenge: when financial performance is strong but the stock price has not yet responded to reward shareholders. What should the compensation committee do in this scenario?(EXECUTIVE COMPENSATION)
January 1, 2008... BEYOND THE SWEEPING MYTHOLOGY that now surrounds executive compensation, the reality is that boards at the vast majority of U.S. companies appropriately reward CEOs who perform well and punish those who do not with comparatively lower...

The compensation committee recharged: what's being asked of the committee in the coming year challenges the traditional distinction between oversight and management. How should the members fulfill their expanded role?(COMPENSATION COMMITTEE)
January 1, 2008... COMPENSATION COMMITTEE members, like their colleagues on the audit committee, are facing higher levels of responsibility and increased scrutiny. The focus on the audit committee intensified with the scandals leading to the passage of the...

Is a health care executive on board? The health care industry is one tough business--breeding a pool of board candidates experienced in dealing with the most difficult challenges facing Corporate America today.(DIRECTOR RECRUITMENT)
January 1, 2008... IN THE UNITED STATES, most companies, regardless of industry, are health care companies. That is because our health benefits system is based primarily upon having employers pay all or part of the premium costs for an employee's family health...

SRI: No longer a niche investment strategy; Being included in socially responsible investment indexes has its rewards. Does your company qualify?(SHAREHOLDER VALUE)
January 1, 2008... IN RECENT YEARS, the notion of a corporation taking the voluntary initiative to uphold standards and practices that contribute to the greater good of society, its employees, and the environment has taken hold across the globe. Corporate social...

Kidnap and ransom: is the risk so remote? Here is what you need to know about K & R insurance in today's dangerous world.(GLOBAL BUSINESS)
January 1, 2008... INDICATIONS ARE that only a fraction of kidnappings that are threatened, attempted, or successful are reported. The FBI investigates 350 to 400 domestic kidnappings annually; one-third result in the payment of ransom (with an average ransom of...

Book it: best bets for board reading; From a roundup of new books, leadership insights on rethinking a succession plan, becoming a first-time president, stakeholder strategizing, VIP treatment, and an ISS-BRT pow-wow.(LEADERSHIP)
January 1, 2008... An unprecedented trip to deliver a message From Corpocracy: How CEOs and the Business Roundtable Hijacked the World's Greatest Wealth Machine--and How to Get It Back by Robert A.G. Monks. Copyright 2008 by the author. Published by John...

Roadmap for successful succession planning: this robust four-step process enables the board to fully address its leadership transition responsibilities and help set the new CEO on the right course.(HEIDRICK & STRUGGLES GOVERNANCE LETTER)
January 1, 2008... LEADERSHIP TRANSITION from one CEO to the next is a risky event. Historically, the risk was addressed through the anointing of a successor by the incumbent CEO. Once that successor was identified, a great deal of time was invested in making...

Directors Roster: a quarterly record of new director appointments.
January 1, 2008... THE DIRECTORS & BOARDS Directors Roster--a quarterly record of new director appointments--is compiled from public and private sources by the editorial staff of DIRECTORS & BOARDS and is sponsored by Heidrick & Struggles. Please forward your...

Company index.(DIRECTORS ROSTER)
January 1, 2008... Aeropostale Inc. Akamai Technologies Inc. Amgen Inc. Apollo Group Inc. Atmos Energy Corp. Bank Mutual BlackRock Inc. BMC Software Inc. C.H. Robinson Worldwide Inc. Cabela's Inc. Cambridge Heart...

Director index.(DIRECTORS ROSTER)
January 1, 2008... Ackerman, F. Duane, Home Depot Inc. Adkins, Rodney, Pitney Bowes Inc. Bailey, Robert L., Micron Technology Inc. Bartz, Carol, Intel Corp. Beck, Julie A., Hilb Rogal & Hobbs Co. Beinecke, Candace K., Vornado Realty Trust...

A prime target: a personal rebellion against 'think-alike' boards motivated the founding of Directors & Boards.(ENDNOTE)(Excerpt)
January 1, 2008... Ed. Note: Stanley Foster Reed, founder of DIRECTORS & BOARDS, died on Oct. 25, 2007, at the age of 90 (see tribute by his daughter, Alexandra Reed Lajoux, on page 28.) The following article is from an essay he composed for the journal's 20th...