Governance

Executive compensation has been a mainstay in the news in the past few years. Concern about growing income inequality birthed the Occupy Wall Street movement in 2011 and the issue has remained on people's minds, with many incensed about the immense gap between the "1 percent" and everyone else. Here, we explore the actions companies are taking...

With the constant forward march of technology and the ever-increasing popularity of BYOD programs, records and information management gets more complicated every day. Businesses must, of course, ensure they're remaining compliant with applicable regulations, but one aspect of risk management in this department may mean challenging those requirements.

Achieving a corporate culture focused on ethics and compliance doesn't happen by accident. It takes a concerted effort from the Board of Directors, CEO and CCO, who all must understand the importance of a strong E&C program and be committed to championing the notions. Michael Volkov offers five key ways companies can strengthen corporate governance.

Leaders ought to be accessible to their staff, though not necessarily at all times. In fact, they may be more effective and get more accomplished if they unplug the phone, turn off email notifications and shut the door now and then. Like airline pilots, executives need to be able to focus during critical phases, and constant interruptions can cause crash...

From 1934, the year marking the passing of the Securities Exchange Act, and 1977, no major corporate reforms were passed. In the past 30 years, however, the situation changed dramatically. Huge corporate scandals, including Enron, WorldCom, Bear Stearns and Siemens have led to sweeping reforms. Is this the trend now? And should it be?

The Budget Control Act of 2011 promised to reduce the budget deficit, and deep cuts have been made across the board, with government contractors paying an especially high price. Historically, government contractors have enjoyed stability in terms of revenue and profits, but neither is certain in a period of market volatility when budget cuts are high priority.

A CCO's primary focus must be on culture - that is, building a culture of ethics and compliance throughout the organization. Lay this foundation and you'll have gone a long way to minimizing risk. Corporate culture should also make up much of what the CCO reports to the Board and senior management. Michael Volkov has some strong words for CCOs...

In an effort to win over a majority of Allergan shareholders, both the parties angling for a takeover and the the company itself are mounting aggressive campaigns to make their cases. Due to some shady goings-on around the recent stock buy-up, Allergen is facing some considerable communications challenges, not the least of which is a sullied reputation among investors.

CIOs must take the lead on IT governance as a means to align the IT division's efforts with the overarching business strategy. But effective IT governance is more than measurement, oversight and the implementation of best practices. The most effective programs facilitate awareness and behavioral change throughout the organization.

An E&C program must be effective -- not necessarily convenient. Does the Chief Ethics and Compliance Officer have enough authority and autonomy? What's being reported to the Board, and does the Board have proper oversight of the E&C program? These are just some of the factors that influence the effectiveness of an E&C program.

Your staff are expected to deliver quality performance. When they fall short - as long as poor training isn't the cause of the problem - it doesn't really matter why. Subpar results just won't do, and must be addressed if the organization is to thrive. If underperformers go unchecked, there’s a much bigger problem to be corrected – with leadership.

There's no question that Board members' jobs are tougher now than ever before. All the more reason to increase accountability; failures in governance often lead right back to the Board, and shareholders bear the brunt of the consequences. The flashier issues, such as CEO hirings, tend to draw their attention, but compliance needs its time in the sun, as well.