Charles Elson
Charles Elson
board seeing
We're seeing board salaries going up all over the place.
board bright company engaged figure financial small sort
He's a very bright guy. He'll figure his way out of this. The financial world is a very small place. When you're on the board of a company engaged in financial transactions, this sort of thing may happen.
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He has a potentially conflicting fiduciary duty. There may be a way around it, but no matter how thick you slice it, it's still baloney. The next Time Warner board meeting will be interesting.
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No director anywhere from this point on would want to put themselves through this kind of ordeal that the directors at Disney just went through for eight years. Now boards realize they must be more independent and circumspect.
board escape failure internal large question
The big question is: Was this a failure of internal controls, or a failure of the board itself? How did something this large escape their notice?
attached boards certainly director directors faded focus greater weight
Because of a greater focus on governance, the resignation of a director certainly has a greater weight attached to it. Boards have greater power. In the past, directors just faded into the sunset.
board course decide percent whether
The board has to decide whether to sell. Thirty-five percent is a pretty big number. They have to decide if that's the right course or they may have a shareholder revolt.
move smarter
I think it's a smarter move on his part.
awful restoring
That would go an awful long way to restoring confidence,
company confidence directors fact good might pay
The fact that directors might go without pay is meaningful. It shows, on the part of the directors, confidence that the company has a good future.
happen information legally liability stock trading
Trading on stock on nonpublic information is legally problematic for the SEC, absolutely. But to get to liability is a pretty long road. It doesn't happen very easily.
anyone asking failure led pick system
When you see something like this, it begs asking what failure in their system led to this. Why didn't anyone pick it up?
agree creates defend explain forces greater management minds pressure whether
When they pressure management to defend itself, it creates greater accountability. It forces management to explain its reasoning. The other shareholders can make up their minds whether they agree or disagree. Let the shareholders decide.
corporate discourage governance greater happy ignore levels negative nor opinion oversight seek view
I do not view this as a negative opinion from a corporate governance standpoint. It should not make those who ignore their responsibilities happy nor should it discourage those who seek greater levels of oversight of directors,