Chipotle Mexican Grill informed shareholders that it would reduce the size of the board by three directors when it announced its founder was stepping away from the company. In what situations does a reduced board make sense? It depends on the complexity of the business — but oftentimes, slimmer works better.
For many years, director compensation was overshadowed by executive pay. But due to recent litigation, more shareholders and oversight organizations keep a close eye on the decisions made by your compensation committee. Without a clear pay growth strategy, then the company risks financial and public backlash.
The New York Times has reported that executives at Walgreens Boots Alliance asked consultants to remove findings from an internal report that included complaints from its employees. For a better way of making sure information isn’t hidden from the board, look towards this technology darling.
The number of companies using artifiicial intelligence within at least one department of their organization grew by nearly 25% last year. If your firm is just getting started on testing AI, here are three key considerations.
Investors are asking more about a company’s workforce, and companies may be forced to tell them. Last fall, the U.S. Securities and Exchange Commission proposed several changes to disclosure requirements for public companies, among them a provision to enhance disclosure about “human capital.” The rule has not been finalized.
Governance always comes into sharp focus when there’s a systemwide breakdown. But a review by Stanford University law professor David Larcker and researcher Brian Tayan suggests that many of the assumptions people make about what constitutes good governance are rarely evidence-based.
Clayton Christensen, the author of the ground-breaking book “The Innovator’s Dilemma,” died recently at the age of 67. Thanks in part to him, almost no one thinks that companies are future-proof anymore.
Corporate boards must guide the CEO’s professional development and performance. Doing so is at the heart of the board’s stewardship role and critical to strategy-setting and execution.
A new disclosure requirement that’s described as the most significant change to the auditor’s report in 70 years is making a difference in the internal controls at large companies, although those looking for scandal so far have been disappointed.
Equifax became the poster child for cybersecurity disasters when hackers breached its systems in 2017, exposing the Social Security numbers of 146 million people, about half the U.S. population. Not only did its CEO and senior executives lose their jobs, the company paid a settlement with multiple agencies as high as $700 million.