The Board’s Three ‘C’s’ of Corporate Governance: Composition, Communication and Connection
U.S. companies face a dizzying array of challenges, including from disruptive technologies and cybersecurity threats; economic and geopolitical uncertainties; climate change and evolving sustainability metrics; and questions about corporate culture, sexual harassment and ethics. Investors continue to look to boards of directors to oversee companies’ navigation through these challenges while at the same time producing superior operating results, financial returns and stock price appreciation.Activist investors remain active, quick to challenge a company’s business strategy, management’s ability to execute and the board’s capabilities. In addition, many long-term institutional investors and large asset managers have become more likely to question whether board members possess the appropriate skills, knowledge and characteristics to oversee the company’s business and management to avoid or mitigate risks and ensure long-term value creation.In light of these dynamics, boards of directors m...