Corporate governance - Vigil

When describing the job of a public company board member, proxy advisors were not naturally inclined to draw up a list of qualifications and responsibilities.

On June 16, 2017, the Stock Exchange of Hong Kong Limited (SEHK) published a concept paper setting forth proposals for the establishment of a new listing board (the “New Board”), with a view to attracting “New Economy” companies (as described below).

A quartet of well-known activist investors has lined up to pounce on plans to break up DowDuPont, the $150 billion chemicals behemoth that will be created by merging Dow Chemical Co. and DuPont Co., potentially waging an unprecedented attack on the firm and Dow chief Andrew Liveris.

Companies face a rapidly evolving risk landscape, and boards must take steps to ensure they oversee those risks effectively

By any measure, corporate directors lead exceptionally busy lives. Many directors hold full-time executive positions, and most serve on the board of at least one other company. Academics and policymakers debate whether directors’ outside professional commitments enhance or detract from their governance abilities.

On June 2, 2017, in the wake of the widespread cyberattack caused by the WannaCry ransomware cryptoworm, the US Department of Health & Human Services (HHS), Office for Civil Rights (OCR) added to its arsenal of cybersecurity guidance a checklist to assist HIPAA Covered Entities and Business Associates in responding to cyber-related security incidents (the Cybersecurity Checklist).

One criticism frequently leveled against boards of directors is that, when it comes to filling vacant board seats, they don’t cast the net widely enough. The numbers clearly show that boards often fill seats with candidates that have previous board experience—it’s even written right into the job description given to search firms in some cases. And, for many boards, that’s an understandable request—bringing on a “proven” director can side-step some of the concerns that shareholders and other board members may have.

Things over at Uber Technologies Inc. remain insane. First, I reported Tuesday that Hewlett Packard Enterprise Co.’s Meg Whitman was a candidate for Uber’s vacant chief executive officer job. Then Thursday afternoon, I said General Electric Co.’s Jeffrey Immelt was also on the shortlist. By Thursday night, Whitman wrote on Twitter that she wouldn’t be Uber’s next CEO. “We have a lot of work still to do at HPE and I am not going anywhere,” she wrote.

What is the purpose of a firm? It’s remarkable that after a century of management theorizing, there is no agreed answer.

Banking regulation is first and foremost preoccupied with the problem of excessive risk-taking by banks and other leveraged financial institutions, which can lead to bank runs and panics and their resulting high economic costs. In recent decades, regulators have sought to curb bank risk-taking almost exclusively through external “safety and soundness” regulations, emphasizing capital requirements, disclosure, and an intensive examination process.

Banking regulation is first and foremost preoccupied with the problem of excessive risk-taking by banks and other leveraged financial institutions, which can lead to bank runs and panics and their resulting high economic costs. In recent decades, regulators have sought to curb bank risk-taking almost exclusively through external “safety and soundness” regulations, emphasizing capital requirements, disclosure, and an intensive examination process.