In conjunction with Deloitte’s Chief Executive Program, this edition of On the board’s agenda reviews recent developments in how boards set executive compensation, outlines challenges related to market volatility, and illustrates how variations across countries may impact compensation strategy.
The Missing Pieces report is a multiyear study organized by the Alliance for Board Diversity in collaboration with Deloitte for the 2016, 2018, 2020, and 2022 censuses. The 7th edition of the report highlights the progress to date that has, or has not, been made in the equitable representation of women and individuals from underrepresented racial and ethnic groups on Fortune 500 boards.
The CEO is usually the most visible and prominent position within a company. The board’s role in CEO succession planning is a unique role and one of the highest-priority activities in which they engage. When things go well, an effective succession planning strategy can result in a CEO with transformative leadership potential who executes on the company’s long-term vision and adds value for shareholders and other stakeholders.
The audit committee’s remit with respect to ethics and compliance is broad and deep and may be difficult to address without focusing on the most important risks. This issue of Deloitte’s On the audit committee’s agenda examines the committee’s responsibilities in monitoring ethics and compliance activities and overseeing the effectiveness of related policies.”
The recovery from the pandemic has been uneven at best, and it brought its own challenges—chief among them inflation. Board-level strategy around such issues often requires weighing a proverbial constellation of economic data. While cost cutting is often the “standard playbook” response in this area, there is value in weighing all the options available to promote economic resiliency. Periods of volatility are also an opportunity for boards to reaffirm their stewardship commitments. Such actions can pay dividends in social capital – a return on investment that, while not measured in dollars, can be just as valuable.
Risk oversight is among the most important of the audit committee’s responsibilities. This edition of On the audit committee’s agenda discusses some areas that are most likely to be the subjects of audit committee risk oversight in 2023 including: financial reporting and disclosure; enterprise risk management; cybersecurity; and environmental and climate change.
In this edition, we discuss some of the critical topics like board composition, technology, workplace, climate, organizational strategy and risks, and finally the board itself, that have remained relatively constant in the past five years, as well as new and emerging topics that will likely be on the board’s agenda in 2023.
The Center for Board Effectiveness, working with the Center for Audit Quality, is excited to share the second edition of the Audit Committee Practices Report. This report is comprised of a survey of 164 audit committee members of primarily large-cap, public companies in the U.S., and provides insight into shifting oversight priorities and practices related to audit committee composition.
This Heads Up discusses the SEC’s recently issued final rule Listing Standards for Recovery of Erroneously Awarded Compensation. The objective of the final rule is to ensure that executive officers do not receive “excess compensation” if the financial results on which previous awards of compensation were based are subsequently restated because of material noncompliance with financial reporting requirements.
Across organizations and countries, the board chair’s role has been amplified. Explore five key forces behind this expansion—and how chairs are stepping up to meet new demands.
It’s critical that boards keep themselves apprised of the rapidly evolving governance landscape and regularly evaluate their performance. This Board Practices Quarterly presents findings from a July 2022 survey of Society for Corporate Governance members that addressed, among other matters, board and committee education topics and board assessment facilitation processes and related disclosure.
