Tag: board of directors

Should Your Organization Divide its CEO and Chairman Roles?

separating the CEO and chairman

Chief Executive Officers who are also the chairman of their board are becoming an increasing rarity. In fact, according to the Wallstreet Journal, the percentage of S&P 500 CEOs serving in the dual role has diminished to an all-time low of 45.6%, as of 2018. Not only is that a historically low number, but it also…

The Benefits of Independent Directors

independent director

Before delving deep into the benefits of having an independent director on any given board, let’s define the term. For a director to be independent, they can’t be a company employee or shareholder. Nor can they be a family member of another director. Mostly, they’re someone that’s brought in from the outside, who possesses a…

The Evolving Role of the Corporate Secretary

corporate secretary

There are three consistent factors involved throughout the operations of most boards of directors: Institutional investors necessitate increased engagement There’s a growing emphasis centered around corporate sustainability Boards are expected to have a firmer grasp on a broader scope of topics, such as: Cybersecurity Human capital Company culture The impact of these various aspects necessitates…

Ways to Increase Employee Happiness from the Board

employee happiness

Any board member reading this blog needs to be honest with themselves. There’s been a historical gulf separating a board of directors from its team of employees. After all, the board calls the shots. And in generations past, boards’ attitudes were rooted in the idea that employee input and satisfaction were irrelevant. All that mattered…

Leveraging Artificial Intelligence in the Boardroom

artificial intelligence

Implementation of artificial intelligence and automation in the boardroom – of all places – doesn’t really seem to jive with conventional wisdom. Boardrooms conjure the most significant decisions about an organization’s past, present, and future. This necessitates in-depth thought—which traditionally isn’t something that can be automated in any shape or form. Realistically, can AI be…

Defending Against Activist Investors

investor meeting

Going public with an organization comes with a multitude of advantages. Predominantly, it means an increase in available capital, further visibility, and access to a wealth of lucrative business partners, etc. Alternatively, going public means opening a company up to an array of risks. Of course, there’s a matter of the high price, a big…

What Are Circular Motions?

circular motion agreement

When the board of directors of an organization signs a document with wording implicating that they are in favor of the proposed resolution, it’s called a circular motion. Companies with established procedures will utilize circular motions instead of passing a resolution at a convened board meeting. Circular motions are appropriate for routine resolutions that rouse…

Types of Board Committees

a board committee during a board meeting

The work of a board of directors is accomplished through an array of smaller groups within its sphere.  Boards commonly leverage standing, ad hoc, advisory, steering, and executive committees to ensure optimal efficiency. Every board of directors needs to be diligent about assessing their committee structure. For instance, in a leaner organization, limiting the number…

Relationship Between Independent Auditors and Boards of Directors

independent auditor looking at financials

To stay on the stock exchange, all publicly traded companies in the U.S. require a qualified audit committee. The committees are charged with overseeing financial reporting and disclosure. Given how integral they are are to a company’s board of directors, the word of these auditors carries plenty of weight in any organization.  Also, the laws…

Best Practices for Nonprofit Boards of Directors

Nonprofit volunteers

The phrase ‘no good deed goes unpunished’ can ring true for boards of directors of nonprofit organizations. Financially, they’re already behind the eight-ball. This hurdle makes the challenges faced by board members stifling – primarily if these organizations don’t have the right systems in place. Without profits, a strategy maximizing every resource to its fullest…