Today’s board must have the right combination of skill and experience to oversee management in navigating the company’s operations through the complex and shifting global and national economic and political landscape. It is no surprise that in this environment board composition keeps attracting shareholders’ attention. According to PwC’s 2016 Annual Corporate Directors Survey (2016 Survey), “investors are now exerting more influence than ever on how boards and management teams operate” and “the pendulum has swung from a ‘board-centric’ model … to an ‘investor-centric’ model … in which institutional investors and shareholder activists have an unprecedented say about board composition.”
The issue of board composition is implicitly tied to the issue of board refreshment. If companies do not plan for board refreshment organically, activist investors will push boards to have “new blood” in the boardroom. The 2016 survey indicates that boards had to make the following changes to the board composition in response to investor pressure:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
