Episode 158 — Improving Corporate Board Governance
It has been almost one year since the Business Roundtable Restatement of Corporate Purposes to underscore expansion of broad governance and sustainability principles. Yet, one year later, not much has changed. Corporate board governance needs to improve and initiate reforms in response to recurring problems and scandals.
Corporate boards can no longer represent resting places for business executives at the end of their respective careers. Shareholders and other stakeholders have to demand reforms that bring corporate boards up to a modern age where board members: engage management in promoting strategic directions; ensure that compensation issues for senior management are appropriately handled; ensure that board committees are staffed appropriately and carry out assigned responsibilities; and the board conducts a robust self-evaluation process.
In this Episode, Michael Volkov reviews the state of corporate board performance and the need to enact broad reforms.