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The just-passed landmark Inflation Reduction Act (the Act) provides numerous opportunities for organizations to meet their ESG and other sustainability goals cost-effectively. The Act also offers many opportunities for clean energy project developers and manufacturers of clean energy equipment to lower costs and increase their business. The combination of several clean energy and manufacturing tax […]
The role played by directors is more challenging than ever before because of competitive pressures and increased volatility in the business environment. This is coupled with a legal structure improperly aligned with shareholder demands. The following are common issues that the chairman of the board and directors face in their duties. Management and boards have […]
The Worst Things a BOD Can Do Most written board governance material focuses on “best practice” and “how-to” type articles. This essay will focus on what board directors should avoid. There are numerous public company examples to draw from, including the infamous 2001 implosion of Enron, which drove a significant change in Federal legislation with […]
After 15 years of governance experience, I’m still surprised at the lack of awareness many board members have around the importance of continuous education. Maybe I shouldn’t be so astonished. Being recruited to a board of director role is prestigious and implies you bring valued insight, trust and gravitas to a room filled with other […]
The 2020 Penn Mutual family business survey identified the underperformance of family employees (and over-involvement of non-employee family members) as a “top 3” challenge. Employees begrudge working with non-productive, entitled family members; family members with no outside experience who abuse the privilege of ownership, and; family members with a weak work ethic. Yet, 88% of […]
Director retention under normal circumstances is generally planned and predictable. When the business is unexpectedly impacted by a negative scenario, retention will become an issue despite what board members tell you in advance. Directors carry varying tolerance for and exposure to risk. As uncertainty rises in the business directors will step down. Typical reasons include […]
The Case for Planned Business Transitions Retirement is a top ten most stressful life event. It is right up there with death, imprisonment, and divorce. Still, fewer than 30% of business owners have an exit plan, and almost half (48%) incur an “unplanned” retirement (meaning a health crisis) forcing them out. Given these striking statistics, […]
[Board members] hold management accountable for articulating and realizing a vision and business strategy that is in line with the values and mission set forth by the family. Mark R. Richards Family businesses thinking about a fiduciary board get concerned about “losing control”. This is a misconception unless the owner is transferring control to the […]