Risks in the Boardroom
Summarizing the Report’s overall findings, Michael Breit and Pete Bible, partners and co-chairs of EisnerAmper’s Services to Public Companies practice provided four conclusions. “As we listen to what the directors are telling us in the Survey several themes emerge:
- Protect against risk: constant board surveillance of management’s review and testing of operations can help companies avoid or mitigate reputational damages.
- The need to understand regulatory and compliance changes is a board requirement. Thousands of rules from recent legislation have yet to be written or fully implemented; accounting standards will change, and the road maps are not yet finalized. Keeping current is a full time task, yet board member’s time commitments are already severely taxed.
- CEO succession planning offers risk and opportunities. Understanding the state of a business in a global economy is required of a CEO, and is a skill directors look for when planning for the future.
- The Board itself will change. Mergers and acquisitions are bringing change to many boards. New and unknown requirements regarding “say-on-pay” and proxy rules may influence member’s decision to stay on boards or reduce the number of boards on which they serve.”
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May 25, 2011
Concerns About Risks Confronting Boards
EisnerAmper today issued its second annual Board of Directors Survey, Concerns About Risks Confronting Boards, designed to gain insight into the risks that are top of mind in today’s boardrooms.