Board Governance Series

Proxy advisory firm ISS’s new test may impact long-term incentive design. With this in mind, directors and the C-suite need to look at the company’s business strategy, where it is in the business cycle, and what it is focusing on from an operations perspective.

Transformational transactions are mergers or acquisitions that companies undertake that are both material and strategic, but they also represent potential risk for companies. 

Directors need to understand the risks of expanding globally. There are a number of proactive steps they can take, though, including appointing a fully empowered compliance officer who has the clout to implement and enforce the compliance program.