A New, Overarching Goal for Boards

One of the painful results of boards embracing the goal to “maximize shareholder value” is shown in the Edelman Trust Barometer: Only 53% of respondents trust business Only 18% of the general population trust business leaders to tell the truth The overarching goal for corporate boards should not be to maximize shareholder value. Instead, boards should … Read more

Leadership Lessons from The Lord of the Rings

J.R.R. Tolkien in military uniform, 1916. Image: public domain Leaders Venture into the Unknown “It’s a dangerous business, Frodo, going out your door. You step onto the road, and if you don’t keep your feet, there’s no knowing where you might be swept off to.” Bilbo Baggins Leaders Step Up “I will take the Ring,” … Read more

Put Trust on Your Daily Docket  

Leadership speaker and author Bob Vanourek use this picture of the trust definition in the dictionary to express the importance of trust.

Let’s assume that as a CEO or board leader you want your firm to be viewed as trustworthy by its stakeholders. You realize a more trusting set of relationships between people will be useful, perhaps even a breakthrough to improved performance. Great. But this is a field where you don’t have expertise. You have been … Read more

Blame Boards For Excessive CEO Pay and Perks

Leadership speaker and author Bob Vanourek uses this image of two people shaking hands in front of a board table to illustrate the importance of the board making ethical and enduring decisions when it comes to CEO bonuses and pay.

Compensation levels for CEO’s and C-suite execs took off like a rocket starting in the 1980’s. It was caused by the dual whammy of Milton Friedman’s “maximize shareholder value” maxim and the advent of the “leveraged buyout” focus from private equity firms. I should know because I participated in those phenomena as a CEO. The … Read more