CANDIDATES
Candidate Toolkit |
THE BOARDSPAN LIBRARY
The Boardspan staff reviews and selects the most informative articles from business news sources, including:





We categorize articles to make them easier for you to find.
- Exec. evaluation & comp
- Critical information about evaluating and compensating the executive team.
Why Directors Should Thank Dodd & Frank
Despite the grumbling and gnashing of teeth that followed its passage, the Dodd-Frank financial reform bill has turned out to be a boon for directors this proxy season.
In fact, 2011, at least so far, could be considered “proxy season-lite” as investors and their proxy advisors have focused on votes on executive pay — a mandate within the Dodd-Frank bill — and away from no votes on the directors’ reelections.
Half way through the season, “negative recommendations are down considerably this year” says Ted Allen, head of publications and governance counsel. Most of those negative recommendations are in the smallest firms, “the wild west in terms of governance”, Allen says.
Looking at the statistics, “during all of 2010, ISS recommended against 13% of all Russell 3000 directors on the ballot,” Allen says. For 2011, ISS has recommended against only 7% of all Russell 3000 directors up for election through May 12.
As of last Friday, only seven directors had failed to win majority votes, Allen says. That figure is way down from prior years as well. For “full year 2010, 107 directors received majority opposition. In 2009, that figure was 95,” Allen says.
The results so far just go to show that the consequences of reform legislation like the Dodd Frank bill can actually go in favor of corporate leaders rather than against them.
So instead of complaining, maybe it’s time companies looked at the glass half full. This year, it looks like approximately 70 U.S. directors (or more) may need to get out their pens and write thank-you notes to Dodd and Frank — and their friends in Congress — for helping them keep their jobs yet another year.
--
Eleanor Bloxham is CEO of The Value Alliance and Corporate Governance Alliance (http://thevaluealliance.com), a board advisory firm.
This article was originally published in Fortune and is republished with the author's permission.
MORE ARTICLES
How to Triple the Number of Women Appointed to Boards in Three Years
Glenn Kelman and Bridget FreyHeadline-4-board_composition
Author-4Headline-3-board_composition
Author-3Headline-2-board_composition
Author-2Headline-1-board_composition
Author-1Headline-4-strategy_&_innovation
Author-4Headline-3-strategy_&_innovation
Author-3Headline-2-strategy_&_innovation
Author-2Headline-1-strategy_&_innovation
Author-1Headline-0-strategy_&_innovation
Author-0Best Practices: Non Profit Governance
McDermott Will & EmeryHeadline-4-board_supervision
Author-4Headline-3-board_supervision
Author-3Headline-2-board_supervision
Author-2Corporate Culture, Not Lip Service, Counts
Luigi Guiso, Paola Sapienza and Luigi ZingalesBest Practices for Board Meeting Preparation
Jordan KarpHeadline-4-culture
Author-4Headline-3-culture
Author-3Headline-2-culture
Author-2Headline-4-team_building
Author-4Headline-3-team_building
Author-3Headline-2-team_building
Author-2Headline-1-team_building
Author-1Headline-0-team_building
Author-0Why Directors Should Thank Dodd & Frank
Eleanor BloxhamBest Practices in Compliance
Stefanie MoscaWhy Every Company Needs a Board of Directors
Brian HamiltonHow To Write The Ideal Proxy Statement
David F. Larcker and Brian TayanHeadline-4-compliance
Author-4Headline-4-leadership
Author-4Headline-3-leadership
Author-3Headline-2-leadership
Author-2Headline-1-leadership
Author-1Headline-4-risk_management
Author-4Headline-3-risk_management
Author-3Headline-2-risk_management
Author-2Headline-1-risk_management
Author-1Headline-0-risk_management
Author-0The Economic Case for Soaring CEO Pay
Anup SrivastavaHeadline-4-exec._evaluation_&_comp
Author-4Headline-3-exec._evaluation_&_comp
Author-3Headline-2-exec._evaluation_&_comp
Author-2Headline-1-exec._evaluation_&_comp
Author-1Corporate Governance in the Age of Cyber Risks
In collaboration with RANE (Risk Assistance Network and Exchange)Headline-4-cyber_security
Author-4Headline-3-cyber_security
Author-3Headline-2-cyber_security
Author-2Headline-1-cyber_security
Author-1In Boardrooms, the Same Is a Shame
Paul MichelmanHeadline-4-featured
Author-4Headline-3-featured
Author-3Headline-2-featured
Author-2Headline-1-featured
Author-1
Your library is currently empty. Browse the Boardspan Library to get started.