Corporate Governance

Corporate governance seems to mean something different to each person.  This section describes my definitions.

What are the decision-making challenges faced by directors? (V2)

Directors face five challenges in making decisions: #1 Have the directors agreed upon which decisions are most critical, and agreed upon the criteria for selecting those decisions? Is the criterion: what has the greatest impact on long-term value creation and preservation? Are the critical decisions: setting the strategy; hiring/terminating CEO; approving CEOs strategic implementation plan; … Continue reading What are the decision-making challenges faced by directors? (V2)

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How can the board of directors create value? (V3)

Long-term value growth and preservation demands a competitively differentiated talent driven board and C-suite.  Overview Boards are ultimately responsible for the long-term success of their organizations. What is the company’s ecosystem? What is the purpose of the corporation? What is governance? What is the purpose of governance? What is value? What is the board’s decision-making … Continue reading How can the board of directors create value? (V3)

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Survey – How do board directors impact long-term corporate value?

This report contains the high-level findings from my survey regarding ” How do board directors impact-long term corporate value?”  A PDF with more detailed data is available for download here. (How do board directors impact long-term value?) People I know from three groups (7 CEOs/Presidents, 8 directors, and 10 major investors) responded to my two … Continue reading Survey – How do board directors impact long-term corporate value?

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What is public company governance?

Overview How are your board of directors and governance competitively differentiated? Compliance governance focuses on the documents and processes to meet legal and regulatory requirements, and other standards. Value growth and preservation governance focuses on having the right people making decisions with a high impact on value growth and preservation. The board should discuss the … Continue reading What is public company governance?

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How to start an advisory board

1      What is the purpose of this document? 2      What is the value of an advisory board? 2.1       What is an advisory board? 2.2       How is an advisory board different from a group of advisors? 2.3       How do you measure advisory board value? 2.4       What are the major benefits of an advisory board, as perceived … Continue reading How to start an advisory board

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How can the shareholders agreement focus everyone on value?

A private company is often governed by a shareholders agreement. How can the shareholders agreement focus the owners, board and management on growing value? Before starting on the shareholders agreement, there must be a common understanding of objectives.  The shareholders may have different objectives.  The purpose of negotiation is to minimize any conflicting objectives and … Continue reading How can the shareholders agreement focus everyone on value?

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How can founders and investors create a shareholders agreement?

1      Purpose of this document 2      How to read and use this document 3      What is a Founders Agreement? 4      What is a USA  (Unanimous Shareholders Agreement)? 4.1       What are the benefits of a USA? 5      How does a USA fit into the overall governance structure? 6      What are the stakeholder expectations? 7      What questions … Continue reading How can founders and investors create a shareholders agreement?

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