Governance

Where dollars go, regulation, reporting and risk follow. The demand and interest in ESG-aligned corporations shows no sign of ebbing, and businesses will need to do what they can to expand their ESG reporting and risk assessments. 2021 was a banner year for ESG (environmental, social, governance) investing, with nearly $650 billion invested into ESG-focused funds worldwide.  No one considers...

Emerging risks are those that cannot yet be fully assessed but could, in the future, affect the viability of an organization’s strategy and business model. A risk savvy culture sometimes calls for an informal adhocracy to identify emerging risks in a timely manner.

Board directors face multiple obstacles: new regulatory changes, issues related to globalization and digital acceleration, the rise of environmental, social and governance (ESG) factors being linked to company performance and more. They are also grappling with the expanding roles and responsibilities expected of them while seeking to apply the lessons learned from the past 18 months. As boards execute oversight...

As external pressures scrutinizing executive pay practices continue to intensify, executive compensation weighs heavily on the minds of company leaders. Shareholder activists, investors and employees are demanding greater transparency. The BDO 600 Study examines CEO and CFO compensation plans and pay levels of 600 middle market public companies, reviews the key components of pay packages and provides comparison by title,...

Intensifying scrutiny around board and executive pay practices, heightened focus on ESG issues, increased demand for talent and evolving accounting, regulatory and tax requirements create new and ongoing challenges. The BDO 600 Study examines board director compensation plans and pay levels of 600 middle market public companies, reviews the key components of pay packages and provides comparison by company size...

A diverse, equitable and inclusive culture contributes to organizations' success by positioning directors and senior executives to add value in evolving markets. Do your board and C-suite measure up? Diversity in the boardroom and the C-suite encompasses such attributes as education, experience, gender, racial and ethnic background, geographic origin, age, digital savvy and specific areas of expertise (e.g., M&A). There...

In recent years, corporate directors have faced an increased risk of shareholder derivative litigation, often based on claims of mismanagement or oversight failures. Insurance premiums have increased in kind, but a recent Delaware Supreme Court decision reverses this trend. Directors’ exposure to potential liability has increased as courts — once more deferential to boards — have increasingly permitted shareholders to...

In the event of Chapter 11 Bankruptcy, creditors often look to recover funds by individually targeting directors or officers (via D&O claims). Those who have a history of bad judgment, lack of dependence or failure to see looming issues could find themselves on the hook.

Implementing an ESG program at your business calls for far-sighted and informed decision-making. But that impulse often lies at odds with short-term fixations on quarterly performance.  This and myriad other quagmires lay in store for those who are tasked with ESG compliance.  ESG — the initials that are transforming corporate missions, purposes and structures, fueled by stakeholder and investor demand....

Per a recent BDO survey, the concerns of many directors remain all-too familiar to compliance departments. Results indicate where leaders plan to divert their resources in the near- and medium-term. A company’s board plays a pivotal role in both compliance and business continuity, which is especially important after the past 18-plus months of disruption have coincided with a push for...

The global pandemic forced many companies to accelerate their digital transformation efforts. As we reflect on lessons of the past 18 months, what must executive management and the board do to continue digital innovation going forward? Most are well aware of the churn in the S&P 500 over time. And many are aware that expected churn in the S&P 500...

Public companies have made strides in increasing the diversity of their boards of directors in the face of pressure from multiple stakeholders, but according to a new analysis of board diversity, there's still a long way to go. The Conference Board (TCB) and ESG data analytics firm ESGAUGE conducted a comprehensive review of board composition, director demographics and governance practices...