No safe place these daysto hide from activists
Directors of major companies have been targets of activists from time to time. They are increasingly under scrutiny and being held accountable for corporate misbehavior and scandals. It is fair to say that board members have become increasingly sensitive for their need to be independent.
The recent press release by New York City Comptroller, Scott M. Stringer announcing “Boardroom Accountability Project Campaign – Version 2.0” makes it clear that the boards of major companies are under continuing scrutiny and pressure.
What is disturbing is the broad indictment (as interpreted by us) of corporate boards with no recognition of improvements that have taken place.
And further, the statement “Now that we have that power, it’s time to raise our voice and demand change…” - is of significant concern.
The press release (a must read) includes a Matrix that profiles board members (too numerous to recite here) that should cause heart burn for any responsible Director. It is beyond comprehension coupled with the requirement of its use and disclosure.
A possible effect of these demands will be to reduce the number of qualified individuals of all genders to serve on corporate boards.
The reaction of the Chamber of Commerce and major corporations will be interesting to observe.