Blog Entries tagged 'corporate governance' Blog Entries tagged 'corporate governance' Tue, 14 May 2013 14:17:59 +0100 FeedCreator 1.7.2 "Risk-intelligent" boards should question assumptions, analyze strategy

So how exactly should boards go about the business of risk management?

The answer: methodically and carefully, with a defined framework for structuring their activities, always informed by the need to align risk assessment to strategy.

Those are the observations of two Deloitte corporate governance experts, Henry Ristuccia, partner and co-leader of governance and risk management services, and Maureen Errity, director of the Deloitte Center for Corporate Governance.

[...] Thu, 28 Apr 2011 23:00:00 +0100 risk management Risk corporate governance boards
Investors to 35 companies: Quit Chamber Board

A group of so-called socially conscious investment firms fired off a letter to 35 major companies urging them to re-evaluate whether it makes sense to remain serving on the Board of the US Chamber of Commerce.

The 44 investors argue there is a major difference between the individual companies' policies on certain matters and Chamber policy objectives.

The press release making the announcement was sent by Walden Asset Management, a division of Boston Trust & Investme [...] Sun, 30 Jan 2011 23:00:00 +0100 Walden Asset Management US Chamber of Commerce Risk Interfaith Center for Corporate Responsibility corporate social responsibility corporate governance compliance Christian Brothers Investment Services Calvert Investments AFL-CIO AFSCME files shareholder votes at 27 companies

It's all about pay.

When shareholders gather at this year's annual meetings, executive compensation figures to be the number one issue on the proxy. This is partly because the Dodd-Frank Act requires all companies whose annual meetings take place after January 21, 2011 to hold so-called Say on Pay votes on their Compensation Discussion and Analysis (CD&A)-an advisory non-binding up-or-down vote. They also will be required to vote on whether the company should hold future [...] Mon, 24 Jan 2011 23:00:00 +0100 say-on-pay County and Municipal Employees corporate governance compliance compensation American Federation of State AFSCME AFL-CIO Managing the perils of hoarding excess cash

A recent piece of research by academics Nils Backhaus and Luc Soenen looking at how to determine if a company is holding excess cash and what the impact is of that, which appears here on AFPOnline, made a very good case for some of the potential pitfalls that companies face when retaining extra cash.

Given the tremendous focus by much of the US business sector on stockpiling cash in recent years, understanding not just the benefits, but a [...] Tue, 16 Nov 2010 23:00:00 +0100 Finance corporate governance control CFO cash management Cash AFP Citizens United: Bad for business?

Tuesday's election was, of course, the first since the Supreme Court ruling in the Citizens United case, which allowed corporations, as well as as union and other groups, to spend however much they want on political campaigns. And sure enough, during this election, the faucet opened wide and millions of dollars were spent on political ads.

But for companies, the big question is, what does this activity mean for business? And there's some indication the answer isn't as posit [...] Tue, 02 Nov 2010 23:00:00 +0100 shareholder value poltical ads corporate governance compliance Citizens United Improve proxy statements to better define risk management

Companies are focused on compliance with new proxy disclosure rules, but they may not be providing the whole picture of the company’s risk management strategy, according to a new report out by corporate advisory firm Deloitte.

In analyzing proxy statements by 398 S&P 500 companies, Deloitte found that although companies were meeting basic compliance requirements for risk oversight, they fell short of providing vital information on risk man [...] Sun, 24 Oct 2010 23:00:00 +0100 S&P; 500 risk oversight risk management Risk Deloitte corporate governance compliance Dodd-Frank punts on separating chair, CEO

The Dodd-Frank Act may have gone a little further on some issues than many people had anticipated. But one potential issue that did not see meaningful change is the separation of the chairman and CEO functions.

The Act requires that the SEC issue rules requiring each public company disclose in its annual proxy materials the reasons why the company chose to have either the same person, or separate people, serve as the Chairman and CEO.

However, the Act does not bar combin [...] Mon, 02 Aug 2010 23:00:00 +0100 Dodd-Frank corporate governance CEO career/management board chair Building microfinance into an asset class

The $44 billion global microfinance industry got a boost recently as private equity investor BlueOrchard attracted $195 million to a new fund aimed at helping microfinance lenders modernize their organizations, improve governance and risk management, and develop into fully-fledged financial institutions.

The knock-on effect is that as the industry as a whole becomes more standardized, with stronger, regulated and rated institutions, this should att [...] Wed, 21 Jul 2010 23:00:00 +0100 small business risk management Risk microfinance Deals corporate governance A season of rising shareholder discontent

This proxy season is shaping up as one of shareholder revolt, as more and more directors fail to receive the support of a majority of owners.

While the Corporate Library, a corporate governance research firm, is still collecting data, early indications suggest that many more directors will fail to win support from less a majority of their shareholders than in previous years.

"The results are much, much, different than in the past," Annalisa Barrett, senior research asso [...] Sun, 11 Jul 2010 23:00:00 +0100 shareholders shareholder dissent shareholder activists corporate governance career/management Arms' length may not be enough for investors

Shareholders recently voiced fresh dissatisfaction with director R. Bruce LaBoon, who is also "of counsel" at Locke Lord Bissell & Liddell, a law firm that provides services to the company.

In its proxy statement, the company cliams that the "attorney fee arrangement with Locke Lord is negotiated on the same basis as arrangements with other outside counsel and is subject to the same terms and conditions."

But that wasn't enough to satisfy investors when [...] Sat, 10 Jul 2010 23:00:00 +0100 shareholders shareholder activists corporate governance career/management Good governance vital to going public

Corporate governance can make or break an IPO, according to advisory firm KPMG. Governance topped the ranking of biggest headaches faced by companies preparing to go public, recent KPMG surveys found. And Aamir Husain, national leader for IPO Services at KPMG, says that corporate governance can be such an issue that it can kill an IPO.

The work involved in improving corporate governance can be overwhelming and complex. There is compliance with SarbOx, quarterly reports with the SEC, th [...] Mon, 05 Jul 2010 23:00:00 +0100 IPO going public corporate governance compliance career/management Emerging market companies improve governance to attract investment

Brazilian companies are taking a page from their US counterparts when it comes to governance and corporate social responsibility. In a recent Latin American corporate governance survey by Latin Finance and consultancy Management & Excellence, Brazilian firms topped the rankings across different industries--not only aiming for compliance, but striving for excellence in corporate social responsibility, sustainability, board independence and other governance measures.

< [...] Mon, 14 Jun 2010 23:00:00 +0100 Sustainability emerging markets corporate social responsibility corporate governance compliance Cash Capital Brazil
The "dark side" of independent directors

Governance activists have argued for years that companies are better off when a majority of their board members are outsiders.

And in the aftermath of the accounting scandals at the beginning of the millennium, listing standards on US exchanges were changed to require boards contain a majority of outside directors. In addition, Section 407 of the Sarbanes-Oxley Act required public companies to disclose whether their audit committees include at least one member who is a financial expert [...] Sun, 13 Jun 2010 23:00:00 +0100 outside directors corporate governance career/management Do CFOs add or subtract value as board members?

While shareholders and Sarbanes-Oxley demand more independent directors on boards, a new study shows companies with boards that have at least one key insider, the CFO, are better at financial reporting than those without that executive on their boards. But that doesn't necessarily mean that all companies should appoint their CFOs to their boards, not at least without taking other considerations seriously into account. In fact, most companies probably should still look elsewhere for the ex [...] Mon, 10 May 2010 23:00:00 +0100 Sarbanes-Oxley corporate governance corporate boards career/management Intellectual property increasingly at risk

Patent infringement has reached the point where companies can no longer rely on litigation alone to protect their intellectual property, experts say. And those on the wrong end of such suits have to take them more seriously.

The intellectual property of the world’s 500 largest corporations is now estimated to be worth over $3 trillion, roughly 80 percent of their total market value. Yet some $59 billion of that is stolen in the US each year, [...] Mon, 10 May 2010 23:00:00 +0100 risk management Risk intellectual property corporate governance corporate boards career/management Time for companies to get serious about lead directors

Despite pressure to improve corporate performance, US companies have been slow to embrace the role of lead director. But critics contend that is a mistake.

Six years after the New York Stock Exchange mandated the presiding director position as a result of the corporate scandals of the last decade, little consensus has emerged regarding the roles presiding or lead directors should undertake and how they can act most effectively to improve the gove [...] Sat, 01 May 2010 23:00:00 +0100 corporate governance corporate boards career/management Study links good governance to stock gains

Advocates of good corporate governance believe there is a link with stock market performance.

Trouble is, there has never really been a study that convincingly concludes that companies that are good corporate citizens are better investments than those who conduct does not meet the standards of the governance set.

However, the folks at The Corporate Library believe they finally discovered the Holy Grail.

They claim a study of investment applications for The Corporat [...] Thu, 22 Apr 2010 23:00:00 +0100 The Corporate Library shareholders corporate governance board of directors Paying bonuses whether it rains or shines  

More companies are using judgment as well as set performance targets to incentivize top managers during uncertain times, a recent survey finds.

In a survey last June of 230 major US corporations, consultancy Mercer found that 26 percent either said they would increase judgment related to short-term incentives last year or that they planned to do so this year. Nineteen percent either said the same thing in connection with long-term performance plans.

The trend in part refl [...] Mon, 19 Apr 2010 23:00:00 +0100 executive compensation corporate governance career/management bonuses Further adventures in the strange case of Koss

Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

It's been nearly three weeks since we last picked up the Koss/Sue Sachdeva beat, when we told you about Michael Koss resigning as the audit committee chair of Strattec Security Corp. At that time, Strattec had also elected to give Grant Thornton the boot as its auditor.

Over the weekend, the Milwaukee Journal Sentinel posted a lengthy-ish piece on the "relaxed overs [...] Mon, 22 Mar 2010 23:00:00 +0100 corporate governance controllers compliance CFOs CEOs board of directors Calling Boys & Girls Clubs on the Congressional carpet

Submitted by Adrienne Gonzalez, republished from Going Concern, Accounting News for Accountants and CFOs.

A group of Republican senators (including Chuck Grassley) want Boys & Girls Clubs of America executives to answer for such egregious non-profit sins as high executive salaries, fat retirement plans, and lobbying expenses. You see, Chuck Grassley is a sharp guy (wild statements about executive suicide notwithstanding) and as ranking member of the Senate Finance Committee, he [...] Wed, 17 Mar 2010 23:00:00 +0100 Going Concern executive compensation corporate governance Congress compliance compensation