In the coming years, the pressure on corporate Boards will reach new levels. Enforcement agencies are scouring investigations and sources of information to bring civil and criminal cases against Board members.
A great deal has been written about the shortcomings of corporations, with fingers pointed in all directions. Often, the failure is not one of operating performance. In fact, successful near-term operating performance may be masking the greater failure: not building long-term, sustainable value that adds jobs, creates wealth at all stages of the value chain and addresses real challenges confronting society.
A seasoned investor once told Belz Commercialization Consulting Group’s Andrea Belz,“Even though business schools teach you that management works for the shareholders’ benefit, in the real world management works to keep management employed.” Cynical, perhaps, but sadly true. As a result, even an engaged board may find that it is unprepared to face significant operational problems, since the most defensive management team often has good reason to be concerned.
Because of this, a board needs to be prepared with a few high-level, penetrating questions to identify and mitigate risks. Which actions are appropriate for an activist board seeking to manage a company through a challenging environment? Click the headline to read more.
In recent years, the government of Dubai has arrested and charged a number of senior corporate executives from financial and real estate firms in connection with allegations of fraud and illegal financial transactions. With the objectives of promoting sound corporate governance policies and stable growth, the government of Dubai recently engaged Hawkamah – the regional institute for corporate governance – to develop a corporate governance framework for small and medium enterprises.
Diaz, Reus & Targ’s Arti Sangar expounds the key principles of Hawkamah and its impact on the evolution of corporate governance in the U.A.E. and in specific on SMEs in Dubai.
What do the Congo, the U.K., Mexico and Colombia have in common? How do legal and political developments in these countries impact corporate boards in the U.S.? If these questions leave you scratching your head, you are not alone. Board members are quickly waking up to the realization that a mix of U.S., European and Latin American laws may dramatically change the way domestic companies do business at home and abroad.
Diaz Reus & Targ’s Carlos Gonzalez and Margaret Perez offer a brief overview of three critical legal developments affecting corporate boards.
This question was brought to the fore in a recent Wall Street Journal called “News Corp. Board Challenged.” Thomas Fox explores this question, offers his analysis of the article and provides six general principles to help guide boards with risk governance.
“Money for Nothing” highlights the many corporate board failures we have seen recently and illustrate how they are “ruining American business and costing us trillions.” CCI is giving you a chance to receive a free copy of the book.
Corporate directors have come under fire in recent months in wake of executive pay controversies at companies like Merrill Lynch and AIG. Bailout funding has also increased the pressure on corporate boards to responsibly allocate executive compensation.