У статті висвітлюються ризики, коли між членами ради директорів та виконавчими керівниками корпорації виникають тісні особисті стосунки, як це видно у справі SEC про нерозкриті зв’язки. У ній стверджується, що така дружба може поставити під загрозу незалежність ради, яка є критично важливою для ефективного управління. Хоча межа між випадковими і матеріальними стосунками залишається неясною, рекомендується повне розкриття соціальних зв’язків, щоб запобігти конфліктам і зберегти довіру. Цей випадок свідчить про ширшу потребу в тому, щоб ради директорів розглядали «соціальну незалежність» як ключову проблему управління. Увесь текст публікації за посиланням https://www.forbes.com/sites/michaelperegrine/2024/10/29/why-directors-and-executives-becoming-bffs-is-bad-for-the-company/
Why Directors And Executives Becoming ‘BFFs’ Is Bad For The Company
Deep personal friendships are a particular joy of life. They should be treasured, whether they arise between neighbors, co-workers, classmates, teammates or any other myriad of relationships. Except, perhaps, when they arise between corporate board members and senior executives of the companies they serve. That’s when friendship can become a real problem, should the board member be otherwise considered “independent.”
That’s the ultimate message from a recent settlement involving the Securities and Exchange Commission that carries broad implications for corporate governance. The settlement resolved charges that a former CEO, chair and director of a NYSE-listed manufacturing company violated “proxy disclosure rules by standing for election as an independent director” when he withheld from the board information suggesting that he likely wasn’t all that independent. The settlement required the director to pay a civil penalty of $175,000, and accept a five-year officer-and-director bar.
Indeed, it turned out that the director had a close personal friendship with a high ranking company executive. This wasn’t any run-of-the-mill relationship; the director often travelled with the executive and their respective spouses, including on six international vacations. The director picked up the tab for more than $100,000 in expenses incurred by the executive and his spouse to join the director and his spouse on those trips.
Director independence has long been a “big deal” in the corporate governance world, going back to the Sarbanes-Oxley era. The thinking is that the leadership dynamic works best when a majority of a company’s board members are independent of executive leadership; i.e. the board isn’t controlled by directors who are somehow beholden to members of management.
There’s no single, all-encompassing definition of what constitutes an “independent director.” Depending on the company’s legal status, guidance can be found in a broad range of listing standards, regulations, statutes or even tax reporting requirements (for nonprofits). It’s usually grounded in some sort of material financial/compensation/executive employment arrangement or family connection involving a board member and the company.
Perhaps the larger governance theme is that director bias – for purposes of independence OR conflicts of interest analysis – can also arise “on the margins;” i.e. on the periphery of relationships traditionally recognized as creating independence or conflict concerns.
Perhaps the days of directors being “beer buddies” with the CEO or CFO may become a thing of the past. And the COO and the general counsel might see a decline in the number of dinner invitations they receive from board members. This thing could get a bit out of control for a while.
But one thing’s for sure, though – the whole subject of social independence is going to be a very difficult, but very important, issue for governing boards to confront.