Prepare to explain why share price is down in an economy that many say is one of the best in history, and to communicate a strategic plan for creating long-term growth and value going forward.
Removing an entire board will likely remain rare, but boards will likely be held increasingly accountable for the amount of time they take to respond to stakeholder concerns.
Given heightened investor scrutiny, every board needs to be asking whether they have the right brain trust to lead the company into the next decade.
Director accountability will be a major theme in 2020, and shareholders and regulators are set to use voting as an enforcement measure.
Alphabet’s board realized that it might be lacking in an area of knowledge essential to company growth, and quickly recruited a stellar candidate to fill that gap—a kind of self-evaluation critical for success.
If companies don’t currently have a policy concerning the addition of a non-management employee to their board of directors, they may want to develop one—soon.
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