If you’re perusing the latest issue of The Wall Street Journal, take a moment to flip to the back of section A. You won’t be able to miss the full-page spread that was secured by 13 of the country’s most influential business leaders.
The ad, which is signed by people like Warren Buffet of Berkshire Hathaway and Mary Barra from General Motors, has one major purpose: to offer up commonsense governance principles “in the hope that they will promote further conversation on corporate governance.”
The article, which is also presented in full at www.governanceprinciples.org, begins by outlining how the future of the economy relies heavily on companies “being managed effectively for long-term prosperity.” It points out that millions of Americans’ retirement savings, college savings, plans to buy a home, and more are directly affected by decisions made by board members at major corporations.
The authors continue by insisting that although they don’t agree on every single aspect of corporate governance, they can offer up six major principles on which they can agree. The principles are summarized in the main article but can be viewed in depth here.
At the top of the list, there is a call for truly independent boards as well as diverse boardrooms—two principles that have found vast support among the leading business news sites and publications. It continues with a nod toward the need for board members to find and hire (and even fire if necessary) high quality CEOs—depending on the needs of the company.
The final three bullets address quarterly earning forecasts, corporate transparency, and shareholder engagement.
Here at Directorpoint, we’re big believers in high quality corporate governance. That’s why we’re dedicated to helping boards streamline their communications and simplify their processes. We’re excited to see these important figures in American business confront the ever increasing need for good governance, and we’re thrilled to be a part of the dialogue they’re encouraging.