Board Guru™ on: this week’s best corporate governance resources.
First, a new report from the Center for Audit Quality, affiliated with the American Institute of Certified Public Accountants, has some interesting information about building investor confidence:
- Boards and CFOs should ask their general counsel and investor-relations team to assess investor confidence in the board and management, and then recommend ways (if necessary) for that to be improved.
- Is the relationships between the external auditors, management, and the internal audit team too close or too confrontational to be effective?
Not all D&O insurance policies are the same. Request an in-boardroom presentation to review your current coverage. Article highlights:
- Severability: Better policies provide that any misrepresentation will disqualify from coverage only the person making the misrepresentation.
- Exclusion of coverage for claims of one insured versus another: Better policies contain an exception to this exclusion to make clear that lawsuits by a company’s creditor representative do not fall within that exclusion.
Finally, a new resource for ethical leadership - Bob and Gregg Vanourek’s book, Triple Crown Leadership, based on research covering 61 high-performing organizations in 11 countries, advocates that boards and CEOs should put building an excellent, ethical, and enduring organization at the top of their priority list. Their website www.triplecrownleadership.com contains the first two chapters of the book, outlining the five practices triple crown organizations use to achieve this audacious goal:
- Hire and promote for head and heart.
- Set an inspiring purpose, values, and vision.
- Flex between steel and velvet.
- Unleash culture stewards.
- Collaboratively align.
That’s it for this week. Enjoy reading these articles, and share your thoughts with us and with others in you Board Guru™ on: this week’s best corporate governance resources.