eBriefing

Trump Tornado: Boards cautiously adapt to change

By Eve Tahmincioglu

Since President Trump took office, boards have been bracing for a weather change in corporate governance.

While many directors believe potential changes will be generally positive for Corporate America, the lack of certainty on what those changes will be is the biggest issue for board members. The first months of the administration, says one board member, have been “like a windstorm, and its direction is uncertain.”

The political maelstrom has many on edge and unclear on what to expect as far as tax reform, trade, regulations, immigration, healthcare, and infrastructure spending, explains James Cox, the Brainerd Currie Professor of Law at Duke University, who specializes in corporate and securities law.

Getting Boards to Think Long-Term

By Maureen Milford

Would a product like Kevlar — DuPont’s light-weight, super-strong fiber used in body armor that has saved thousands of lives — get to the marketplace today?

Research and development began in the mid-1960s on what became Kevlar; it wasn’t introduced until 1971.  

“No CEO in their right mind today would ever give approval for (research and development of) Kevlar,” explains Edgar S. Woolard Jr., who was CEO of DuPont from 1989 to 1995. A short-term orientation can make CEOs “afraid to make big decisions.”

For Woolard, a former director of Apple Computer who was instrumental in bringing Steve Jobs back to what is ranked as one of the world’s most innovative companies, there’s no question the short-term mindset can negatively impact the kinds of innovation that might change the world. 

But now, it appears, many other business leaders are seeking to swing the pendulum away from the obsessive focus on short-term results to approaches designed to spark innovation and create value over the long term.

Latest  Push for Board Gender Equity

By Eve Tahmincioglu

The latest salvo to get corporations to boost gender diversity on boards came from the Pennsylvania legislature with the unanimous, nonpartisan  passing of a resolution last week. 

The legislation is not about affirmative action, says lead sponsor of the resolution Rep. Kate Harper (R), adding that, “The goal is to shed a little light on the subject."

It’s a subject that’s gotten a lot of attention in recent years, with little movement when it comes to major diversity inroads in the nation’s boards. 

The Private Company Governance Summit 2017

Fox News’ Harassment Woes: What should board’s role be?

By April Hall

Sexual harassment woes at Fox News, leading to the recent firing of the network’s top host Bill O’Reilly, millions of dollars paid out in settlements and a government investigation, clearly impact the network and its parent 21st Century Fox.

But it’s unclear what role  the board of directors played in the ongoing saga.

“As a publically traded company, [board directors] have a responsibility to the shareholders,” says Harry Kraemer, professor at the Kellogg School of Management, former CEO of Baxter International Inc. and author of From Values to Action. “The values of the company are something that the board needs to be absolutely involved with.”