The Equilar Institute provides in-depth research and analysis on boards of directors, shareholder engagement, executive compensation and other issues affecting the world of corporate governance. Below are some key highlights from the last quarter that showcase the in-depth information available in public filings via the Equilar database.
The public company universe is intertwined in more ways than one may think through the people who serve on boards of directors. A recent Equilar blog, “Uber Adds 81 Corporate Connections With New CEO Khoshrowshahi,” looked at how the currently private company increased its influence in the public markets as it pushes toward an IPO with its new chief. The article also examined the corporate networks of other candidates in the CEO search.
Following the news that President Trump’s CEO Councils disbanded, Equilar found the defected CEOs had a combined 1,800 connections to other executives and board members. Losing the corporate connections via CEO councils may be downplayed in the White House, and indeed it may have little real impact on business as usual in Washington and across corporate America. But the ripple effect that passes through thousands of individuals and companies in these corporate networks based on these events is undeniable.
The concept of diversity is defined a number of different ways, whether by age, gender, demographics or “diversity of thought,” which typically refers to the variety of skill sets on a board of directors. As cybersecurity becomes more integral to boardroom operations, Equilar looked at how diversity manifests when it comes to these experts on the board in “Analyzing Board Cybersecurity Expertise by Age, Tenure and Gender.”
In addition, “Declassified Boards Are Much More Likely to Be Diverse” analyzed the differences between boards that have annual elections vs. those who elect directors in “classes” every several years. The Equilar data showed that annual elections produce more diverse boards (see below).
While many executive compensation observers charge that pay packages have become homogenous in order to placate proxy advisors, “Four Ways to Use Discretion in Annual Incentive Plans” examined how many companies are still being creative and offering solutions that are a best fit with their unique circumstances.
Visit www.equilar.com/institute or www.equilar.com/blog to read these articles in full as well as many, many more.