Directors Keeping Jobs in Spite of Shareholder Nonsupport
How many of us would be keeping our jobs if less than 50% of our bosses / peers did not approve of our work?
Between the news of unethical executive compensation schemes bombarding us from the media on a daily basis and these types of board problems, it is clear that American corporate governance is ill and in need of major surgery.
The article linked below, from Directorship.com says that unpopular Board members where not removed because there are few challengers or replacements available. Doesn’t this sound suspect? The problem may be that the way that boards are structured, governed and financially maintained does not provide incentives for change. Hasn’t there been a huge ruckus about bringing more women and minorities on corporate boards but according to what one reads in the media, there just aren’t enough qualified people from those groups. If outsiders can’t get into boards, of course those in them are pretty secure from competition.
To read the full article from Directorship.com please click the link below:
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The photo above is of two well known board members from a Fortune 500 company based in NYC. The photo taken at a Golf outing in 1915 was used last year in an Annual Report. When the media inquired as to why not use a “more recent” photo, the answer was “Mr. XXX and Mr. YYY wanted to make sure they portrayed a youthful image for the company, and it was either this photo or one where they are both being assisted by nurses into a Segway scooter!