Comments for

Comment on Corporate Valuation by Dave Guerra

Dave Guerra — Wed, 06 Jul 2011 13:24:54 +0000

I just read your new Fortune Money article How to Get Paid Like a CEO and it is truly astonishing. Greed and Selfish Leadership is super-alive and well at the top of especially U.S. companies. We need servant leadership more than ever. I would have to concur with Alexandra – great job!

Dave Guerra

Comment on Corporate Valuation by Alexandra R. Lajoux

Alexandra R. Lajoux — Mon, 09 May 2011 00:32:08 +0000

Dear Eleanor:
It’s high time that you got the recognition you deserve from your pioneering work in corporate valuation. Bob Monks and I, along with Jim McRitchie, salute you!
Sincerely,
Alex
Alexandra R. Lajoux
PS: Thank you for mentioning our book.

Comment on Who’s in Charge? by Melinda M. Sorensson

Melinda M. Sorensson — Thu, 30 Dec 2010 12:09:19 +0000

I read the article a while back. It is very important and wonderfully written.

My son asks me about stocks and corporate leaderships as part of his business education. It brings to mind Steve Jobs and Larry Ellison. I don’t see Steve Jobs having a clear heir apparent. The value of the stocks of his company are completely dependent on him.

This is not a very sound practice, however I assume that someone like him would have someone in mind already.

And then Larry Ellison. I am a great admirer of both Ellison and Jobs and follow their companies, because of them.

The one thing I will always consider brilliant is Ellison’s choice of Safra Katz. It is fantastic, on all levels.

By that choice alone, he has insured the long term stability of his company.

Comment on How We Make Judgments – We’re Only Human by Melinda M. Sorensson

Melinda M. Sorensson — Tue, 14 Dec 2010 22:58:49 +0000

I was thinking this today in the context of any large corporation doing and holding preferences of loyal clients, where they should have a website where people simply report a concern, an observation, a thought for future product.

All decisions/preferences/habits are emotion based. It does not matter what it is. That emotion is a programmed response. An implant, if you will.

Only a self determined individual will be able to separate objective observation from the emotion evoked by anything.

The vast majority will respond according to patterns of behaviour they are accustomed to and it can’t simply be traced to childhood experiences either.

Comment on Sexual Harassment — and the Board by CorpGov.net » CorpGov Bites

CorpGov.net » CorpGov Bites — Thu, 23 Sep 2010 15:04:40 +0000

[...] The SEC and Diversity in the Boardroom: Commissioner Aguilar Speaks (theRacetotheBottom) Jay Brown offers additional insight in a multipart series. “Directors are nominated and vetted by the board. They typically run unopposed. Unsuprisingly, boards tend to self perpetuate, with little shift or change in diversity or background. This is, in short, an example of market failure.” [...]

Comment on Sexual Harassment — and the Board by Melinda M. Sorensson

Melinda M. Sorensson — Tue, 14 Sep 2010 17:46:49 +0000

It is an important statistic that you cited. I do not have a daughter but I think the mothers should really emphasize the importance of telling them what goes on, especially something of this magnitude. I think it is because the girls tend to brush it off as “harmless flirtation” and that appears funny at first, but not so.

Comment on Legality and Morality by Evelynn Brown, J.D.,LL.M

Evelynn Brown, J.D.,LL.M — Tue, 17 Aug 2010 19:42:03 +0000

I understand your shock when the director articulated the “sphere” of action is defined including legal advice on what is “fair game.” A paradox exists between Legality v. Morality which I have titled; The Moral Integrity of the American Identity; How Avarice and Egocentrism Destroyed the U.S.

There exists an extreme crisis of consciousness in this country. A total unawareness of the consequences of mindful decision making. A continual rippling of negative outcomes from high risk management behavior. U.S. leaders, executives and government officials believe they will be legally protected.

Sometimes we must root around in the dark crevices to find our way to the light. There is lesson here and if we don’t learn it, we are destined to repeat it.

Comment on The Risks in Budgets and Plans by CorpGov.net » CorpGov Bites

CorpGov.net » CorpGov Bites — Wed, 23 Jun 2010 15:03:41 +0000

[...] Eleanor Bloxham (The Risks in Budgets and Plans, 6/15/10) reflects on BP and offers “As a director, consider carefully the regularity with which plans are faulty and evaluate how good any company really is at planning (did your company forsee the breadth and depth of the financial crisis?). Consider this carefully before you consider tying peoples’ performance, reputation, promotion and pay to “plans”.” [...]

Comment on The Goldman Sachs Board and the SEC History by Catherine Finamore Henry

Catherine Finamore Henry — Sun, 25 Apr 2010 20:55:35 +0000

Interestingly, one of Goldman’s Business Principles reads “Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and the spirit of the laws, rules and ethical principles that govern us. Our continued success depends upon unswerving adherence to this standard.” http://www2.goldmansachs.com/our-firm/our-people/business-principles.html. Whether or not the recent SEC fraud charges and subsequent shareholder lawsuits of lax oversight prove to have merit, these words may prove to be eerily prescient for Goldman.

Regarding the cultural issues, the Goldman Sachs board should determine if executive management has taken adequate steps to ensure that the actual culture of the organization “encourages ethical conduct and a commitment to compliance with the law” (U.S. Sentencing Guideline §8B2.1(a)(2)) http://www.ussc.gov/orgguide.htm, and in reality, aligns with and supports behavior that is consistent with the well-written aspirational Business Principles. A history of SEC suits against Goldman as identified by Bloxham may be relevant here.

At the same time, unfortunately, the board, as defendants in the associated shareholder lawsuits, should be under scrutiny to determine if it has exercised “reasonable oversight with respect to the implementation and effectiveness of the compliance and ethics program.” (U.S. Sentencing Guideline §8B2.1(b)(2)(A))

This brings to light an inherent challenge associated with responsibilities for effective organizational ethics and compliance programs. The board has oversight responsibility with respect to implementation and effectiveness of the ethics and compliance program, while executives and other high-level personnel have responsibility for the development and implementation of the program. What happens to the checks and balances when, as in the case with Goldman Sachs, the Chairman of the Board and Chief Executive Officer is one and the same? I am reminded of the popular banking commercials about the right thing to do in business, even kids would know better. http://www.youtube.com/watch?v=7qb0vquRcys

Catherine Finamore Henry, CIA, CCEP, http://www.FinamoreAssociates.com

Comment on The Goldman Sachs Board and the SEC History by CorpGov.net » What Should Boards Learn From Goldman Sachs?

CorpGov.net » What Should Boards Learn From Goldman Sachs? — Mon, 19 Apr 2010 16:28:44 +0000

[...] There’s been a raft of coverage. One of the best summaries I’ve seen is Goldman Sachs vs. SEC: All You Need To Know (Latest UPDATES) on the Huffington Post. However, boardmembers of Goldman Sachs and other vulnerable banks are advised to read Wall Street beware: the lawyers are coming, by Frank Partnoy, FT.com, 4/19/10 and The Goldman Sachs Board and the SEC History at The Bloxham Voice, 4/19/2010. [...]