Proxy Season Survival Tip: Make Board Composition a Priority
The National Association of Corporate Directors has published an article titled “Proxy Season Survival Tip: Make Board Composition a Priority” and made it available for downloading.
It’s from the latest edition of NACD Directorship Magazine.
During proxy season, directors may feel as though they’re navigating a minefield of activist issues. Major institutional investors are also taking activist stances, especially in the area of board composition.
This puts boards under pressure to comply with investors’ guidelines. But how? It isn’t possible for boards to track and address many thousands of investor issues.
This article explains how boards can avert activist demands–by knowing what their shareholders are thinking and staying ahead of possible grievances. Directors can make needed changes in the boardroom by
- increasing board diversity with both female and minority members;
- strengthening risk oversight with tools and resources provided by NACD; and
- updating governance guidelines in light of those proposed by investors.