The Best Incentive Plans Are Easy to Understand This morning I chatted with a Board Chair about how to implement a highly motivating compensation plan for his CEO. I shared with him the most effective plans that I had ever utilized. They had these characteristics. Easy to understand. Incentive plans work best when the reward [...]
Canadian Hearing Society CEO Julia Dumanian has an in-depth perspective on the challenges of the CEO role in today's organizations. In this blog series, Julia shares her insight on the role of the CEO. Julia Dumanian, CEO of Canadian Hearing Society When Julia was a Boardroom Metrics consultant, we asked her to document her [...]
Private Company Boards are Smaller and Less Independent Statistics show that private company Boards are smaller and less independent than public company Boards. This matters. The rationale that leads public company Boards to be larger and more independent also applies to private company governance. 1. Board independence. Private company boards are overwhelmingly composed of related [...]
Failed Boards are more common than people realize. Failed Boards are much more common than most people realize. Charged with the responsibility of identifying and mitigating risk; validating and overseeing strategy; and, hiring and performance managing the CEO, most organizational failures are the responsibility of the Board. From Enron to Volkswagen, Boards full of smart [...]
Expanding the Role of the Private Company Board Most private companies report having a Board of Directors. Typically, the role of these private company Boards is for the owners to meet and make decisions about the business – frequently financial decisions. Although these owner meetings are important, there are other elements of a Board’s governance [...]
Many years ago, I was part of a consulting firm with a mean, curmudgeonly owner. I wasn’t a fan of his. He wasn't a fan of my writing. So, he decided to teach me how to write. For a period of six months he made me write all of his reports, speeches, articles – and [...]
Recommendations Start with why - defining the reason for your private company Board will help you understand how governance can be improved. There are three reasons that private businesses have Boards: business advice business oversight make owner decisions How to think about each. There are many ways to get advice that don't require having a Board. [...]
Boardroom Metrics provides Corporate Governance and Strategy Consulting services to Public, Private and Not-for Profit Organizations in the United States and Canada. Board self-assessments are an important corporate governance tool. However, Board self-assessments that over-rate the effectiveness of the Board of Directors can damage a Board's ability to govern more effectively. On this Podcast [...]