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In this Closer Look, we examine the roles that leadership and culture play in contributing to chronic misbehavior and the manner in which it takes root in an organization. We use the example of Uber Technologies. Between 2012 and 2017, Uber Technologies faced a series of governance challenges...
Persistent link: https://www.econbiz.de/10011976272
not clear that independent directors receive the information they need to make fully informed decisions on all key matters …. Partly, this is due to an information gap, whereby outside directors know substantially less about the business and market … information sharing with the goal of significantly increasing transparency among the CEO, executive team, and board of directors …
Persistent link: https://www.econbiz.de/10011980147
CEO activism — the practice of CEOs taking public positions on environmental, social, and political issues not directly related to their business — has become a hotly debated topic in corporate governance. To better understand the implications of CEO activism, we examine its prevalence, the...
Persistent link: https://www.econbiz.de/10012001263
The boards of all publicly traded companies are required to conduct a self-evaluation at least annually to determine whether they are functioning effectively. Research suggests that while many directors are satisfied with the job that they and their fellow board members do, board evaluations and...
Persistent link: https://www.econbiz.de/10011870202
Many observers consider the most important responsibility of the board of directors its responsibility to hire and fire the CEO. To this end, an interesting situation arises when a CEO resigns and the board chooses neither an internal nor external candidate, but a current board member as...
Persistent link: https://www.econbiz.de/10011870297
Understanding CEO compensation plans is a continuing challenge for directors and investors. The disclosure of these plans is dictated by SEC rules that rely heavily on the “fair value” of awards at the time they are granted. The problem with these numbers is that they are static and do not...
Persistent link: https://www.econbiz.de/10011870307
CEO succession at many companies occurs in a black box. Shareholders are not privy to boardroom discussions prior to the announcement of a CEO departure, and press releases announcing the change contain boilerplate language that does not make it clear whether the CEO stepped down voluntary or...
Persistent link: https://www.econbiz.de/10011870450
Governance experts have vigorously debated the appropriateness of CEO compensation. And yet, very little effort has been made to understand the size, quality, and efficiency of the labor market for CEO talent, which is a key determinant of pay. In this Closer Look, we review data collected from...
Persistent link: https://www.econbiz.de/10011873095
Board members rely on information provided by management to inform their decisions. Unfortunately, some research calls … into question the adequacy of the information the board members receive and, by extension, the quality of decisions they … board books and provides recommendations for remedying them.We ask:• In general, what is the quality of information that …
Persistent link: https://www.econbiz.de/10011873105
Institutional investors pay considerable attention to the quality of a company's governance. Unfortunately, it is difficult for outside observers to reliably gauge governance quality. Oftentimes, poor governance manifests itself only after decisions have been made and their outcomes known. We...
Persistent link: https://www.econbiz.de/10011864693