January 27, 2010
Is your Board’s leadership strategy sufficient to meet new SEC rules for 2010? To answer, begin by asking the right questions.
Starting in the 2010 proxy season, all U.S. public companies are required by the SEC to describe their board leadership model and why they chose it. In order to frame a company's responses with an eye toward their strategic goals, it’s not only an issue of asking the right leadership questions – but the most relevant.
As the drafts of new disclosure statements are created here are a few of the questions directors should ask themselves:
1. How is the current structure of the CEO/Chairman working for us?
2. What makes the separation or combination of the position relevant?
3. Will the chosen role hold up under closer scrutiny?
4. With a board that has a combined CEO/Chairman with a lead director, what type and level of leadership contributions does the lead director make?
5. Are we taking into account changes in our current strategic environment and how our leadership structure may need to evolve meet new challenge?