With the courts saying that shareholders must prove that they have formally asked boards to diversify—and given boards time to make changes—a couple of responses from shareholders are likely.
Great board members have an almost paradoxical ability to be collegial and constructive on the one hand and challenging on the other. The worst directors, on the other hand, are like bulls in the proverbial china shop. Here’s how to identify and avoid the latter.
Five tips for getting real diversity in your boardroom before the absence of it begins to affect your bottom line.
While we should take time to acknowledge the progress made in diversifying corporate boards, this is also a good time for directors to determine where they stand on this issue.
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.
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.
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