“Zombie Directors, Real Independent Chairs, and Nay on Pay” (by Nell Minow)

The following entry appeared as part of Governance Metrics International’s GMI Blog. GMI is the leading independent provider of global corporate governance and ESG ratings and research. Corporate stakeholders – including leading investors, insurers, auditors, regulators and others – use GovernanceMetrics services to identify and monitor risks related to non-financial measures covering key environmental, social, governance and accounting risk factors.

Bloomberg invited me [Nell Minow]to write a series of three articles on corporate governance this week, and they are all up now, so take a look.

One calls on zombie directors, those that failed to get majority support from shareholders, to leave the board. And it calls on D&O liability insurers to stop covering them. And one documents the rise in no votes on say on pay proxy proposals, and explains what the top indicators are that a pay plan will fail to get shareholder support. The third explains why separating the chairman and CEO jobs is a good investment, with findings from our own research at GMI Ratings.

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.