The reputation of business trust is below that of Congress, so the Business Roundtable decided what’s needed is a charm offensive. More than likely, it will backfire.
In a move seen to be the first in a series of steps to curtail the power of proxy advisory firms, the SEC reiterated its stance that providing advice on voting is “solicitation” under federal law and will be governed by stringent anti-fraud rules.
Silicon Valley investor Roger McNamee, one of the earliest investors in Facebook, weighs in on the FTC's $5 billion fine for Facebook and the multiple investigations into potential anti-trust violations by the largest companies in technology.
Corporate boards should take note that the situation at Progenics Pharmaceuticals has resulted in a proxy advisory firm validating a call for “shareholder board oversight.” Serving on a board that has been sighted for oversight by its investors could have an effect on future board appointments.
Board members must continually evaluate bribery risks and insist on receiving independent reviews of the ongoing effectiveness of the organization's anti-corruption and anti-bribery programs. You can start by asking executives these questions.