Comments for Governance Center Blog http://tcbblogs.org/governance Thu, 04 Mar 2010 22:47:18 -0600 http://wordpress.org/?v=2.8.2 hourly 1 Comment on Worth Reading … Financial Crisis by tampa doctor http://tcbblogs.org/governance/2010/03/03/worth-reading-%e2%80%a6-financial-crisis/#comment-819 tampa doctor Thu, 04 Mar 2010 22:47:18 +0000 http://tcbblogs.org/governance/?p=384#comment-819 If these gentlemen are serious persons on this debt meeting, who desire to maintain some shred of personal credibility, they will both respectfully decline to participate in this charade. Obviously, the President wants cover for any action on taxes and spending, and naming a commission is the opposite of showing leadership. Mr. Obama continues to want to avoid responsibility for anything. One wonders why he wanted to be President at all. McConnell and Boehner should also respectfully decline to name members to the President's commission. The President is not serious about budget or spending issues, and no commission will make any substantive recommendations that the President could not address now. Paul Ryan has already done this work. If these gentlemen are serious persons on this debt meeting, who desire to maintain some shred of personal credibility, they will both respectfully decline to participate in this charade. Obviously, the President wants cover for any action on taxes and spending, and naming a commission is the opposite of showing leadership. Mr. Obama continues to want to avoid responsibility for anything. One wonders why he wanted to be President at all. McConnell and Boehner should also respectfully decline to name members to the President’s commission. The President is not serious about budget or spending issues, and no commission will make any substantive recommendations that the President could not address now. Paul Ryan has already done this work.

]]> Comment on What to Make of the Loss of Directors’ Education Accreditation by Life with Director Education Sans Accreditation | Governance Center Blog http://tcbblogs.org/governance/2010/02/03/what-to-make-of-the-loss-of-directors%e2%80%99-education-accreditation/#comment-806 Life with Director Education Sans Accreditation | Governance Center Blog Wed, 03 Mar 2010 16:28:10 +0000 http://tcbblogs.org/governance/?p=300#comment-806 [...] I was not able to speak with someone on the record in my initial post, I did listen to a detailed Feb. 25 Webcast interview by Corporate Board Member’s TK Kerstetter [...] [...] I was not able to speak with someone on the record in my initial post, I did listen to a detailed Feb. 25 Webcast interview by Corporate Board Member’s TK Kerstetter [...]

]]> Comment on Liquidity Risk Disclosure Could be a Game-Changer by Gary Larkin http://tcbblogs.org/governance/2010/02/26/liquidity-risk-disclosure-could-be-a-game-changer/#comment-802 Gary Larkin Mon, 01 Mar 2010 19:31:34 +0000 http://tcbblogs.org/governance/?p=374#comment-802 Bill Adams says: Enjoyed your post on liquidity risk disclosure. It's a pet issue of mine. (I wrote an article on Chinese bank counter-party risks in 2008. But I think the quote you cite about the tax on non-deposit liabilities driving up the cost of short-term financing by commercial paper, etc., may be a little one-sided. Financing costs for non-financial corporations in 2006 might have been higher if the tax had been in place then. But financing costs in 2008 might have been lower, since the tax would have encouraged banks to be less leveraged and so better insulated against a financial crisis. Long-term, it's very hard to say if the gains from the financial crisis averted would be larger than the losses from higher financing costs between crises. Economists have a hard time measuring gains from stability vs. losses from efficiency. But the possibility seems worth mentioning to me. Bill Adams Resident Economist The Conference Board China Center for Economics and Business Bill Adams says: Enjoyed your post on liquidity risk disclosure. It’s a pet issue of mine. (I wrote an article on Chinese bank counter-party risks in 2008. But I think the quote you cite about the tax on non-deposit liabilities driving up the cost of short-term financing by commercial paper, etc., may be a little one-sided. Financing costs for non-financial corporations in 2006 might have been higher if the tax had been in place then. But financing costs in 2008 might have been lower, since the tax would have encouraged banks to be less leveraged and so better insulated against a financial crisis. Long-term, it’s very hard to say if the gains from the financial crisis averted would be larger than the losses from higher financing costs between crises. Economists have a hard time measuring gains from stability vs. losses from efficiency. But the possibility seems worth mentioning to me.

Bill Adams
Resident Economist
The Conference Board
China Center for Economics and Business

]]> Comment on Liquidity Risk Disclosure Could be a Game-Changer by Get Real http://tcbblogs.org/governance/2010/02/26/liquidity-risk-disclosure-could-be-a-game-changer/#comment-798 Get Real Sat, 27 Feb 2010 19:33:29 +0000 http://tcbblogs.org/governance/?p=374#comment-798 OK, let's not fool ourselves - the "financial crisis responsibility fee" has nothing to do with making sure the government is repaid TARP lending to the "largest financial institutions". Last I checked just about all of lartest financials have paid back everything already and with each pay-back and subsequent warrant sale the Treasury touts the positive rate of return it has made on each of those loans. Where the government is not going to get paid back is from the lending to AIG, GM and Chrysler. Last time I checked they are not banks and the last two are not financial institutions at all (lending arms notwithstanding). The financial crisis responsibility fee is a politically motivated, punitive tax, whose biggest impact is likely to be to reduce market transparency and liquidity. OK, let’s not fool ourselves – the “financial crisis responsibility fee” has nothing to do with making sure the government is repaid TARP lending to the “largest financial institutions”. Last I checked just about all of lartest financials have paid back everything already and with each pay-back and subsequent warrant sale the Treasury touts the positive rate of return it has made on each of those loans. Where the government is not going to get paid back is from the lending to AIG, GM and Chrysler. Last time I checked they are not banks and the last two are not financial institutions at all (lending arms notwithstanding). The financial crisis responsibility fee is a politically motivated, punitive tax, whose biggest impact is likely to be to reduce market transparency and liquidity.

]]> Comment on Investors, SEC Concerned About CEO Succession Planning by John Szold http://tcbblogs.org/governance/2010/02/18/investors-sec-concerned-about-ceo-succession-planning/#comment-748 John Szold Fri, 19 Feb 2010 16:12:38 +0000 http://tcbblogs.org/governance/?p=363#comment-748 When you consider the amount of scrutiny that takes place to ensure that physical inventories are reported accurately, an investor's understanding of the quality of leadership inventory (aka Succession Planning) is highly superficial. In a recent article, I pointed out some of the pitfalls. Please see http://www.planningforsuccession.com/releases/The%20SEC%20&%20Succession%20Planning.pdf Directors need to be able to rely on objective third party evaluations to eliminate gaps in succession planning processes and outcomes. When you consider the amount of scrutiny that takes place to ensure that physical inventories are reported accurately, an investor’s understanding of the quality of leadership inventory (aka Succession Planning) is highly superficial.
In a recent article, I pointed out some of the pitfalls. Please see http://www.planningforsuccession.com/releases/The%20SEC%20&%20Succession%20Planning.pdf
Directors need to be able to rely on objective third party evaluations to eliminate gaps in succession planning processes and outcomes.

]]> Comment on Q&A With Nell Minow – Financial Regulatory Reform by Q&A With Nell Minow – Financial Regulatory Reform « Corporate Governance Leaders http://tcbblogs.org/governance/2010/02/11/qa-with-nell-minow-%e2%80%93-financial-regulatory-reform/#comment-716 Q&A With Nell Minow – Financial Regulatory Reform « Corporate Governance Leaders Fri, 12 Feb 2010 15:08:06 +0000 http://tcbblogs.org/governance/?p=342#comment-716 [...] “I believe in the market,” she wrote. “But executives and their boards of directors have hijacked the market to externalize costs and it is doing critical damage to capitalism. The key is always persuading providers of capital that managers will use the funds to create shareholder value and not to enrich themselves. This compensation mess calls that into question…(continue reading) [...] [...] “I believe in the market,” she wrote. “But executives and their boards of directors have hijacked the market to externalize costs and it is doing critical damage to capitalism. The key is always persuading providers of capital that managers will use the funds to create shareholder value and not to enrich themselves. This compensation mess calls that into question…(continue reading) [...]

]]> Comment on What to Make of the Loss of Directors’ Education Accreditation by Liz Barron, Director of Education, NACD http://tcbblogs.org/governance/2010/02/03/what-to-make-of-the-loss-of-directors%e2%80%99-education-accreditation/#comment-665 Liz Barron, Director of Education, NACD Wed, 03 Feb 2010 22:34:40 +0000 http://tcbblogs.org/governance/?p=300#comment-665 The National Association of Corporate Directors agrees that education is desirable for the value it brings to individual directors and to whole boards. Our members' enthusiasm for our classroom and virtual programs suggest that they are genuinely committed to continuous learning, not because they're forced to, or because someone is giving them a check mark, but because they really want to know and to grow. NACD has extended its curriculum in 2010 to keep up with demand from public company directors. This year we will run our Director Professionalism cornerstone program 4 times in different parts of the country and have supplemented this with two new programs. Director Professionalism-The Master Class is designed for lead directors and committee chairs and will run twice in 2010. This is in addition to the lively educational agendas offered by our 22 chapters and our complimentary webinar series addressing audit, compensation and boardroom excellence fundamentals. Directors know that the speed of economic and political change and the increasing complexity of board work means that education is a must-have--they're demanding it for themselves. Those who complete our Director Professionalism course will earn their Certificate of Director Education and we provide transcripts for directors who attend all our programs to share with their boards. NACD is proud to be at the forefront of director education, and pleased to work with so many seated directors who are creating, sharing and applying knowledge. The National Association of Corporate Directors agrees that education is desirable for the value it brings to individual directors and to whole boards. Our members’ enthusiasm for our classroom and virtual programs suggest that they are genuinely committed to continuous learning, not because they’re forced to, or because someone is giving them a check mark, but because they really want to know and to grow.

NACD has extended its curriculum in 2010 to keep up with demand from public company directors. This year we will run our Director Professionalism cornerstone program 4 times in different parts of the country and have supplemented this with two new programs. Director Professionalism-The Master Class is designed for lead directors and committee chairs and will run twice in 2010. This is in addition to the lively educational agendas offered by our 22 chapters and our complimentary webinar series addressing audit, compensation and boardroom excellence fundamentals.

Directors know that the speed of economic and political change and the increasing complexity of board work means that education is a must-have–they’re demanding it for themselves. Those who complete our Director Professionalism course will earn their Certificate of Director Education and we provide transcripts for directors who attend all our programs to share with their boards.

NACD is proud to be at the forefront of director education, and pleased to work with so many seated directors who are creating, sharing and applying knowledge.

]]> Comment on Worth Reading … SEC Proxy Disclosure Rules by What to Make of the Loss of Directors’ Education Accreditation | Governance Center Blog http://tcbblogs.org/governance/2010/01/27/worth-reading-%e2%80%a6-sec-proxy-disclosure-rules/#comment-663 What to Make of the Loss of Directors’ Education Accreditation | Governance Center Blog Wed, 03 Feb 2010 21:21:31 +0000 http://tcbblogs.org/governance/?p=280#comment-663 [...] on director qualifications, diversity, director liability and compensation policies (See Jan. 27 Governance Center blog post), the need for good director education programs couldn’t be any higher. Accreditation, which [...] [...] on director qualifications, diversity, director liability and compensation policies (See Jan. 27 Governance Center blog post), the need for good director education programs couldn’t be any higher. Accreditation, which [...]

]]> Comment on SEC Wants More Concise Disclosure That is Material by Best to Keep Eyes Peeled on SEC Agenda | Governance Center Blog http://tcbblogs.org/governance/2009/12/18/sec-wants-more-concise-disclosure-that-is-material/#comment-646 Best to Keep Eyes Peeled on SEC Agenda | Governance Center Blog Mon, 25 Jan 2010 16:53:11 +0000 http://tcbblogs.org/governance/?p=222#comment-646 [...] SEC Action: Final rule issued on Dec. 16. Description: The proxy disclosure enhancements (Read my post from Dec. 18) would require disclosures in the proxy and financial statements [...] [...] SEC Action: Final rule issued on Dec. 16. Description: The proxy disclosure enhancements (Read my post from Dec. 18) would require disclosures in the proxy and financial statements [...]

]]> Comment on Top 10 Issues Facing Directors in 2010 by Gary Larkin http://tcbblogs.org/governance/2010/01/08/top-10-issues-facing-directors-in-2010/#comment-640 Gary Larkin Thu, 14 Jan 2010 20:12:38 +0000 http://tcbblogs.org/governance/?p=241#comment-640 Sean: Intriguing idea. In the states, the words "corporate defense" are usually uttered when referring to hostile takeover bids or a company's adoption of a poison pill plan. Have you written papers on this subject? I recall that I thought saw such a paper. Also, I would be willing to post about such an idea if you have the time and more information. Cheers. Gary Larkin Sean: Intriguing idea. In the states, the words “corporate defense” are usually uttered when referring to hostile takeover bids or a company’s adoption of a poison pill plan. Have you written papers on this subject? I recall that I thought saw such a paper. Also, I would be willing to post about such an idea if you have the time and more information. Cheers.

Gary Larkin

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