With shareholder proposals at record levels, proxy advisors threatening to vote “against” directors on non-diverse boards and increasing state legislation threatening fines for lack of diversity, it may soon be all but mandatory.
To promote that necessary board evolution, Cameron recommends placing emphasis on the following areas.
If directors on other company boards do not want to suffer the same fate, they should consider the following now.
Directors have seen their responsibilities expand significantly as scrutiny of board decision making has increased—as has the amount of work board members must do to keep the company running efficiently. It might just pay to add seats.
Findings of a new study give supporters of stakeholder capitalism ammunition to question the motives of corporate boards that favor CEO pay increases. Three things directors should consider.
If shareholders continue to be dissatisfied with CEO salaries, directors who sit on compensation committees may come under greater scrutiny.
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