David Bogoslaw, 10/21/15
As government agencies issue more comprehensive guidelines for oversight and amid shifting compliance demands over time, boards see need for more regular reviews.
Board accountability is a buzz term in recent governance discussions, fueling greater attention to such things as director evaluations and shareholder engagement in order to improve performance and avoid or mitigate activist investor campaigns. These campaigns have increasingly aimed at replacing directors on allegations of failure to fulfill their fiduciary duties through appropriate oversight of companies’ business strategies. The wholesale replacement of Darden Restaurants’ board last year sent a clear signal to board members that they need to take a harder look at their oversight in all areas.
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