Caterpillar Inc.’s CAT 0.35% chief executive Jim Umpleby has been named chairman of the machinery giant’s board as well, cementing his leadership nearly two year into his tenure. The move reverses Caterpillar’s decision to split the CEO and chairman positions last year. Corporate governance experts say that having a separate chief executive and board leader can improve oversight and… Continue reading Caterpillar Puts CEO Back in Charge of Board
Tag: Board of Directors
Outgoing CEOs Step Down, but Not Out
Once an unusual occurrence, CEOs’ stepping down to take board or executive chair positions while new, typically first-time CEO replacements get their bearings has become routine in recent years. In an orderly internal transition, the move is thought to signal stability to customers, key clients, employees and investors, and often lasts about one or two… Continue reading Outgoing CEOs Step Down, but Not Out
Boards Tap C-Suite in Evaluations
As board evaluation processes mature, directors are becoming more willing to conduct in-depth evaluations of their peers and the full board, including asking members of management to describe their perspective on the board’s overall effectiveness via a third-party consultant. Though management’s input was once thought to be an unnecessary source of information, boards and consultants… Continue reading Boards Tap C-Suite in Evaluations
Board Moves: New Faces at Audit Committee Meetings
Boards are stuffing audit committees with new directors who have deep financial backgrounds as well as digital and e-commerce experience. Directors appointed to the boards of such companies as Becton Dickinson Co., Chesapeake Energy, GameStop, JetBlue Airways, MGM Resorts International, PulteGroup and United Rentals during the past four weeks have also been assigned to serve on audit committees, according to intelligence from SEC filings… Continue reading Board Moves: New Faces at Audit Committee Meetings
Few Cyber Experts Named to Audit Committees
The designation “kitchen sink committee” continues to be an apt moniker for the audit committee, as research shows it is getting saddled with cyber-security oversight more than any other board committee. However, new questions are emerging over whether audit committee directors have the right expertise to deal with these new responsibilities. Though investors are continuing… Continue reading Few Cyber Experts Named to Audit Committees
Wave of New Recruits Join Boards
After years in which many board members privately claimed that it was too difficult to find qualified women to serve as board members, 2018 is on pace to become a year in which a record number of women join boards. The Wall Street Journal reports that women represented close to one third of new board members recruited to… Continue reading Wave of New Recruits Join Boards
Raises to Lead Director Retainers Continue
As more boards see the breadth and depth of the lead director role expanding, committees charged with director compensation oversight are recommending the institution of new retainers for lead directors and, in some cases, doubling the retainer already in place. For example, Adobe Systems instituted a $50,000 retainer for its lead director in the past year, while Leucadia… Continue reading Raises to Lead Director Retainers Continue
Spikes in Director Retirements, Resignations
Director departures have ticked up over the past four years, and according to an Agenda investigation, there appear to be several factors behind the shift. Pressure from activists, investors focused on board refreshment and diversity and an overall reckoning with gaps in board skills have led to monthly spikes in director departures stretching back to 2015, according… Continue reading Spikes in Director Retirements, Resignations