At what point has a director served too long? What about term limits? A mandatory retirement age? When do a director’s skills become stale?
These issues are addressed in this issue of The Informed Board, as well as why proxy advisory firms and institutional investors are questioning director independence after nine years of service, and how activists are leveraging this trend. Listen to our latest podcast episode to learn about best practices in assessing board skills and implementing an effective board refreshment policy.
We also look at the varied ways boards approach the oversight of cybersecurity issues, and what information directors need to know about cyber risks.
Finally, with a change in administration in the offing, we examine the prospect that national security AI regulations may change — or remain largely unchanged.
How Long Is Too Long? Activists Continue To Target Director Tenure
Proxy advisory firms and institutional investors are increasingly questioning director independence after nine years of service, and activists are leveraging this, so companies should be prepared to explain the value of veteran directors.
What Companies Can Do To Protect Against Cyberattacks … and the Litigation That Often Follows
Facing an increased risk of cybersecurity breaches and new mandatory disclosures about responsibility for cybersecurity, many companies are revisiting their cyber defenses and asking which board committees are best positioned to oversee them. Documentation of the board’s oversight can help defend against lawsuits in the wake of an attack.
Most AI National Security Regs Likely To Remain in Place Under the Next Administration
Based on national security concerns, the Biden administration has adopted or proposed a number of regulations covering AI, including export and foreign investment restrictions, as well as reporting requirements, often with a focus on China. We expect most of these initiatives will be maintained under the Trump administration.
A Director Discusses How the Roles of Public and Private Company Directors Differ
DocuSign chairman Maggie Wilderotter, who has served on dozens of boards, public and private, discusses how the role of a director changes when a company goes public.
Recommended Reading: ‘Multigenerational Boards’
Research suggests that companies whose directors span a wide range of ages outperform their peers in the same industry.
Podcast: When and How To Replace a Director
Boards need to have a robust refreshment program. Strategies change, directors’ skills become stale and investors are skeptical about the independence of long-tenured directors. Skadden M&A partner Ann Beth Stebbins discusses best practices in board refreshment with her guests, Laurel McCarthy of Spencer Stuart and Elizabeth Gonzalez-Sussman, who heads Skadden’s shareholder engagement and activism practice.