Proxy season 2004 - have corporations stopped fighting corporate governance reforms?
April 12, 2004 (Press Release) --
It's enemies long opposed it as a huge, powerful, monolithic empire, but its collapse was quick, unexpected, and largely bloodless. That description fits the fall of Communism 15 years ago -- but also sounds much like the surrender of corporate America to investor activism this proxy season, observes the April issue of Boardroom INSIDER.
Ralph D. Ward, publisher of the online governance monthly, notes that shareholder no-confidence votes at Walt Disney Co., and strong proxy campaigns at major firms like Hewlett-Packard, Safeway, Tenet and Oracle are turning the "battle for governance reform into a governance rout." With pending U.S. Securities and Exchange Commission rules to make it far easier for shareholders to directly nominate board members, "the days when boards and CEOs could just stonewall an investor proxy campaign are passing. What's interesting is the number of companies we see surrendering without a shot, such as HealthSouth remaking its board due to shareholder demands."
While expressing doubt that "CEOs are suddenly going to advocate for shareholder democracy," Ward sees both corporate management and boards "sensing that the tide of history has turned in the shareholders' favor."
Also in the April issue of Boardroom INSIDER:
[] Setting corporate dividend policies- what boards must know.
[] How do you evaluate your outside audit firm?
[] Time to beef up your corporate secretary office.
[] 5 hot advisory board trends.
Ralph D. Ward is an international business speaker, consultant, and publisher of Boardroom INSIDER, the online newsletter for better boards and better directors (http://www.boardroominsider.com). He is author of the books Saving The Corporate Board, Improving Corporate Boards, The Boardroom INSIDER Guidebook, and 21st Century Corporate Board. For more information, contact (989) 833-7615.
Ralph D. Ward, publisher of the online governance monthly, notes that shareholder no-confidence votes at Walt Disney Co., and strong proxy campaigns at major firms like Hewlett-Packard, Safeway, Tenet and Oracle are turning the "battle for governance reform into a governance rout." With pending U.S. Securities and Exchange Commission rules to make it far easier for shareholders to directly nominate board members, "the days when boards and CEOs could just stonewall an investor proxy campaign are passing. What's interesting is the number of companies we see surrendering without a shot, such as HealthSouth remaking its board due to shareholder demands."
While expressing doubt that "CEOs are suddenly going to advocate for shareholder democracy," Ward sees both corporate management and boards "sensing that the tide of history has turned in the shareholders' favor."
Also in the April issue of Boardroom INSIDER:
[] Setting corporate dividend policies- what boards must know.
[] How do you evaluate your outside audit firm?
[] Time to beef up your corporate secretary office.
[] 5 hot advisory board trends.
Ralph D. Ward is an international business speaker, consultant, and publisher of Boardroom INSIDER, the online newsletter for better boards and better directors (http://www.boardroominsider.com). He is author of the books Saving The Corporate Board, Improving Corporate Boards, The Boardroom INSIDER Guidebook, and 21st Century Corporate Board. For more information, contact (989) 833-7615.
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