eBriefing

State Street Votes Against Directors at Non-Gender-Diverse Companies

By April Hall

Following through on the promise made with the installation of “The Fearless Girl” statue earlier this year, State Street Global Advisors (SSGA) sent a strong message to companies with little gender diversity.

The investment powerhouse voted against the reelection of members of board committees tasked with recruiting new board members at 400 companies in the United States and beyond.

The Fearless Girl, a bronze statue of a girl facing the iconic Wall Street bull in the heart of Manhattan’s financial district, was erected earlier this year by SSGA as a call to action for getting more women on corporate boards.

How Boards Can Self Evaluate

By Taylor Griffin and Courtney Hamilton

Although the New York Stock Exchange requires every listed company board to “conduct a self-evaluation at least annually to determine whether it and its committees are functioning effectively,” the NYSE provides no guidance as to what such an evaluation should encompass.

Evaluations are commonly conducted by the company’s own general counsel or, at best, outside legal counsel. They tend to focus on the board’s constitution, processes, and compliance with corporate governance best practices. An evaluation conducted on this limited basis is likely to overlook essential aspects of board leadership and effectiveness, such as the contribution of individual directors, overall group dynamics, and most importantly, whether the experience and skillsets of board members are well aligned with the current and future strategic needs of the business.

My Board Journey

Transitions Canada

The conference created for business families by business families.
 
Join us in Toronto this fall for Family Business Magazine’s Transitions Canada.
 
After overwhelming success in both the US and Mexico, Transitions will hold its first Canadian event Sept. 13-15, 2017 at The Radisson Admiral Toronto Harbourfront.

D irector Pay Rises

By Eve Tahmincioglu

Pay for outside directors at the largest companies in the nation rose 4% last year, according to a Willis Towers Watson study released this week.

Total compensation was up 2% at the median compared to 2015, bringing the payout to $260,200 from $255,800. That includes a pay mix of 43% cash and 57% equity.

“We have settled into a ‘new normal’ on compensation for outside corporate directors following several years of significant changes that occurred following the financial crisis,” says Richard Bannister, North America practice leader, executive compensation at Willis Towers Watson.