Corporate Governance

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

Why is governance essential for successfully scaling startups?

The management team relationships, and roles of the CEO/founder(s), shareholders, investors, and board of directors rapidly change in a successfully scaling startup. Who makes what decisions is rapidly changing.  A lack of clarity and common understanding of who makes what decisions and is accountable for what results can cause confusion, and slow down or prevent … Continue reading Why is governance essential for successfully scaling startups?

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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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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 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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