December 22, 2016 - Issue 2.50 - Your weekly news on all things board.
View this email in your browser
Director's Domain: News & views for today's boardroom. Brought to you by Boardspan.
It's a quiet time in the board room -- the lull before the storm of regulatory changes and strategy updates as organizations sort out what the new year and new players could bring? Two of this week's articles reflect opinions about what a Trump administration might mean for board rules and Dodd-Frank regulations. Another examines how those companies with directors likely to take part in the new administration are already faring well. Meanwhile, research shows that the number one skill that innovative CEOs have in common is their ability to manage risk. That seems like an important competency to hone in the year to come. See the piece from our archives, below, to learn more.

And on a personal note from all of us at Boardspan, thank you for your readership throughout 2016.  We're giving Directors Domain a week off for the holidays but just you wait and see what Boardspan has in store for you in 2017! Best wishes for a joyous season.

The Hot Seat

When Board Members Influence Share Price

“What do companies like General Dynamics, Goldman Sachs and Exxon Mobil have in common?  They're a few of the names with board members joining the next presidential Cabinet, if Donald Trump gets his way. Directors from those companies and others — including Wells Fargo, News Corp. and Ingersoll-Rand— are going to be nominated for high-level government positions in the new administration. And those stocks have already seen a benefit to their share prices since the election, beating the overall market.” CNBC

Across the Board

Curated news and insights from the world's boardrooms.

What Will Trump Team Mean for “Unelected Directors?”

“Under the Trump Administration we can expect that there will be many changes at the Securities and Exchange Commission. One important area that has gone largely ignored and is ripe for reform is the system of ‘unelected directors’ for public companies. The Committee on Capital Markets Regulation—a policy group with executives from across the financial sector and leading academics—recently studied how boards of directors of public companies respond to unfavorable votes by their shareholders. The Committee’s startling discovery is that, in 85% of cases where a director does not receive a majority of shareholder votes, the director will continue to serve on the board for at least two more years.” FORBES

A Plea to Reform Dodd-Frank

“The rumor mill suggests that reform of the Dodd-Frank financial law is imminent in the next Congress. It’s about time. Despite what some legislators seem to believe, no bill is perfect and Dodd-Frank isn’t the New Testament. Co-author and former Rep. Barney Frank told me as much in his office shortly after the bill was signed in 2010. ‘Make a list of needed amendments,’ I recall him saying, ‘and let’s see what we can do.’ Every legislator wants his work to be permanent, and Mr. Frank is no exception. But he recognized that the way to give a law long life is to fix it when problems arise.” WALL STREET JOURNAL

Apple Responds to Activists on Proxy Access

“Apple Inc's board relaxed some rules for director nominations by outside investors but stopped short of broader changes sought by an activist shareholder. The new bylaws disclosed in a securities filing late on Thursday dealt with the mechanics of ‘proxy access,’ the sometimes controversial process allowing outside investors to nominate their own candidates to a company's board. Just how much influence to give such investors has been a hot topic with the rise of activist shareholders who some executives fear may not have long-term corporate interests at heart.” NEW YORK TIMES

5 Key Skills of Innovative Leaders

“Innovation is critical in a knowledge economy — driving growth, new products, and new methods of delivering value to customers. According to PWC’s 2016 study on Global Innovation, U.S. companies spend $145 billion dollars in-country on R&D each year. And yet, despite its importance, innovation is a difficult quality to cultivate both in leaders and in organizations. … XBInsight has collected competency data on nearly 5,000 leaders across a wide range of industries. Analyses were done to identify the competencies that innovative leaders share. The top five competencies found in our research are outlined below, including their corresponding behaviors. Every CEO should be cultivating these behaviors to maximize innovative thinking: 1. Manage Risk…” HARVARD BUSINESS REVIEW

Bristol-Myers CEO Adds Chair Role

“Bristol-Myers Squibb Co. on Wednesday said Chief Executive Giovanni Caforio will add the chairman title this spring, succeeding Lamberto Andreotti, who will retire. The switch, which will be effective at the May 2 shareholder meeting, marks the final exit of one of the leaders who helped transform the pharmaceutical company into an immunotherapy pioneer.” WALL STREET JOURNAL

4 New Directors for Chipotle

“Chipotle Mexican Grill, Inc., facing criticism that it was slow to respond to an E. coli outbreak last year, named four new directors to its board in a long-anticipated shake-up supported by activist investor Bill Ackman. The new members -- Paul Cappuccio, Robin Hickenlooper, Ali Namvar and Matthew Paull -- joined the board on Wednesday.... The overhaul addresses concerns that Chipotle’s board was too insular and lacked diversity. The changes also add restaurant-industry experience in the form of Paull, previously chief financial officer of McDonald’s Corp. Following a series of foodborne-illness outbreaks last year, Chipotle drew flak for lacking the operational expertise of larger fast-food chains.” BLOOMBERG

Redstone to Leave Viacom Board  

“The ailing 93-year old media mogul Sumner M. Redstone will step down from the board of Viacom in February, the company announced Friday, after a yearlong debate over his mental competence. Even so, Mr. Redstone will continue to control his $40 billion media empire through his National Amusements holding company, where he remains chief executive. And there are no changes to his position on the board of CBS, where he is chairman emeritus.” NEW YORK TIMES

From the Boardspan Archives

Why Getting Directors on Board with Risk Management Matters

“When the idea of corporate risk management was only related to financial risks, it was simple to see where on the org chart responsibility for it should fall. In today’s business world, it’s much more complicated, and regulators have been pushing boards to do more oversight. Wharton accounting professor Christopher Ittner has been researching the results of these changes: Do they make a real difference to internal behavior or the bottom line, or are companies just going through the motions?” KNOWLEDGE@WHARTON via BOARDSPAN

A Seat at the Table

  • Diane M. Bryant, EVP of Intel and GM of its data center group, joins the board of aerospace company United Technologies
  • Citi welcomes to its board Deborah C. Wright, former president and CEO of Carver Bancorp Inc. and Carver Federal Savings Bank, the nation's largest publicly-traded African-American led bank
  • Cybersecurity firm Imperva welcomes to its board Roger Sippl, CEE of Elastic Intelligence and the founder and former CEO of three companies which he took public, including Informix (now part of IBM)
  • Maximus, which operates government health and human services programs, welcomes to its board two new directors: Gayathri Rajan, VP of product management at Google, and Anne K. Altman, former GM of U.S. federal and government industries at IBM
  • Data visualization software company Tableau appoints to its board Hilarie Koplow-McAdams, president of digital intelligence company New Relic
  • Financial information company Motley Fool elects to its board Teresa Kersten, head of consumer marketing at LinkedIn
  • Data-risk reduction firm Spirion welcomes to its board Donald Codling, a former FBI agent and unit chief of the FBI Cyber Division
Copyright © 2016 Boardspan, All rights reserved.

Learn more about Boardspan.

We would love to hear from you! Share your feedback and story tips:

Forward this to a colleague:[UNIQID]

Not subscribed? Sign up now!

Our mailing address is:

369 Pine Street
Suite 810
San Francisco, CA 94104

Add us to your address book

This email was sent to <<Email Address>>

Unsubscribe from this list
 Email Marketing Powered by Mailchimp