Boards Should Welcome NYSE, Nasdaq Clawback Proposals
While no company wants to be threatened to comply with a rule, boards should embrace clawbacks for the following three reasons.
While no company wants to be threatened to comply with a rule, boards should embrace clawbacks for the following three reasons.
Lack of oversight can sink a company and ruin careers. How prepared is your board to deal with evolving risks in your industry?
Consider talking to your largest shareholders privately instead of having issues of international business risk dealt with publicly.
The board’s failure to take swift action could result in shareholder lawsuits, an SEC investigation and loss of insurance protection.
Directors should take heed of the reasons for the suit, and the fact that it holds board members individually responsible.
One key lesson? Acknowledging mistakes and correcting them quickly.
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