The most prominent consideration for today’s boards is how to balance short-term pressure to perform while keeping a focus on creating long-term shareholder value. As a result, many institutional investors and governance leaders are focused squarely on board composition as the No. 1 issue in 2017. Ensuring that good decisions are being made today is as important as ensuring the right people will be making them for the next 10, 20 and 30 years.
Our featured interviews in this edition of C-Suite highlight this interplay. Glenn Booraem, a Principal and Investment Stewardship Officer at Vanguard, spoke to us about why investors are targeting board assessment and refreshment. Steve Odland, CEO of the Committee for Economic Development (CED), identified the risks companies face when they have a singular vision on short-termism.
Our recurring feature, The Changing Face of America’s Boardrooms, once again highlights the contributions of new directors and the importance of bringing fresh, diverse perspectives into the fold, featuring support from our partners at the KPMG Board Leadership Center. And one of our regular contributors, TK Kerstetter of Boardroom Resources, wrote about how to measure a “high-performance board,” and he also conducted a Q&A with Liberty Advisors about the role of the board in M&A situations.
If you’re joining us at the 8th Annual Equilar Executive Compensation Summit in June, you’ll also notice an overarching, relevant theme in this issue. E*TRADE Financial Corporate Services, FW Cook, Korn Ferry Hay Group and Semler Brossy have contributed to a special section on incentive compensation, and Ask the Experts features input from the Center On Executive Compensation, Mercer, Nuveen, Reed Smith and Teneo about the potential influence political uncertainty will have on compensation and governance practices. Ron Schneider of Donnelley Financial Solutions looked at the evolving messages companies are communicating in their proxy statements.
In March, we proudly celebrated 17 years at Equilar. It’s amazing to reflect on what has changed in that time and how the decisions made today will influence the future. As always, please enjoy this issue and feel free to reach out to me directly with any feedback.
David Chun
CEO and Founder, Equilar
dchun@equilar.com