Corporate governance seems to mean something different to each person. This section describes my definitions.
The governance ecosystem is comprised of: the board, management, shareholders, other stake holders, third parties, and society. All components of the ecosystem interact with all other components. The board and management must understand and plan to manage the ecosystem as it exists today and the future. The assumptions regarding the future governance ecosystem are key … Continue reading What is the corporate governance ecosystem?
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)
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)
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?
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?
Overview Private equity governance is driven by value growth, not just compliance. There’s a 100% focus on realizing major growth in shareholder value, either in the short or long-term. Transformation of the board or C-Suite may be required. Shareholders make decisions which are often made by the board of a public company. e.g. CEO appointment … Continue reading What is different about private equity governance?
What is family governance? Some wealthy families are emotionally bound together by a commonly understood legacy as well as shared vision, identity, values, and purpose. Based on these factors, the family also manages its philanthropy together as well as its wealth. Every wealthy family is different and some have no emotional or financial ties. What … Continue reading What is different about family governance?
What is the value of a for-profit advisory board? Advisory boards have a major impact on sales and productivity, comparing the three years after an advisory board vs the three years before an advisory board: sales growth of 67% vs 23% and productivity growth of 6% vs 3%.1 What is an advisory board? A group … Continue reading What is the value of a for-profit 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
Survey – what is the role of advisory boards? I did a survey of people on my LinkedIn network who are on an advisory board or a CEO with an advisory board. This survey was done because I was appointed chair of an advisory board and wanted to learn from others. If you are an … Continue reading Survey – What is the role of advisory boards?
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?
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?
You are in Ontario, Canada and looking for information about governance. Where do you go? The attached document provides a partial list of (mostly) non-profit governance organizations. I exclude most for-profit organizations such as lawyers, accountants, etc. The type of governance I focus on is the board of directors of a corporation and its relationship … Continue reading How do you find governance information?