In the News–Corporate Governance
Johnson Makes Rare Speech as Fidelity Deals With Harassment
Charles Stein, Laura Colby and Miles Weiss, Bloomberg, October 24, 2017
Fidelity Investments’ Abigail Johnson took center stage on Tuesday and counseled money managers gathering in Washington about charting their future in the digital world. But the chief executive, a featured speaker at one of the industry’s biggest conferences, is also struggling with a stubborn legacy of the past: the treatment of women in the world of finance.
Over the last two months, Fidelity, one of the largest investment companies, has dismissed two portfolio managers — one over allegations of inappropriate sexual comments and another over claims of sexually harassing a female junior employee.
Fidelity and other money managers may face a flood of complaints “now that the lid is off,” said Davia Temin, president and CEO of Temin & Co., a New York based crisis-management company.
Going forward, Johnson has to continue to “set the tone” that the organization will take every case that comes to light seriously and emphasize there’s also a business case for doing so, said Temin. While Fidelity is a closely held company without public shareholders, its customer base cares about these issues, she said. Some public pension funds already demand that women be included on teams that manage their money. […read more]
Faber, Weinstein Put Boards on Notice: You’re the Adults Now
Jeff Green and Jordyn Holman, Bloomberg, October 17, 2017
Corporate directors should now be on notice: bad behavior isn’t so easily swept under the rug. As a parade of executives has been outed as sexist, racist or both, boards have been called on to set — and enforce — standards of decent behavior.
On Tuesday, veteran investor and ubiquitous pundit Marc Faber agreed to leave the boards of three companies after he published racist commentary in his subscription newsletter. The week before, five Weinstein Co. directors quit in the wake of revelations about Harvey Weinstein and his history of alleged sexual assault and harassment made public by the New York Times and the New Yorker.
At this point, “CEOs and boards have to be the adults in the room,” said Davia Temin, head of the New York-based crisis-management firm Temin & Co. “Boards’ voices are getting strengthened, to some degree, because of the need of a counterpoint.” […read more]
Davia Temin Says Trump Had No Choice But to End Councils
Scarlet Fu and Julie Hyman, Bloomberg, August 16, 2017
In today’s “Walk the Talk,” Davia Temin, head of the crisis-management firm Temin & Co., reacts to President Donald Trump’s decision to disband two advisory groups of U.S. business leaders. She speaks with Bloomberg’s Scarlet Fu and Julie Hyman on “Bloomberg Markets.”
To watch the interview on Bloomberg, CLICK HERE.
CEOs Rethink Alliances With White House
Vanessa Fuhrmans, The Wall Street Journal, August 15, 2017
President Donald Trump’s response to the weekend violence in Charlottesville, Va., has sparked a new round of soul-searching in U.S. corporate boardrooms over whether they should keep working closely with the White House.
On Tuesday, the number of members who have withdrawn from a White House advisory council grew to five, and executives including Wal-Mart Stores Inc. Chief Executive Doug McMillon criticized the president’s initial unwillingness to specifically denounce the racist hate groups that rallied in Charlottesville over the weekend.
The fallout is testing already-tense relations between the White House and corporate executives, many of whom face new pressures from employees, consumers and activists to take stands on social and political issues. At times, those issues have put them in direct opposition with a president whose pro-business agenda they are also seeking to shape.
“This is one of the toughest times for the consciences of corporate boards and corporate CEOs,” said Davia Temin, head of Temin & Co., a reputation and crisis-management consultancy. Ms. Temin said she expects more leaders to resign their advisory posts. […read more]
Three More CEOs Turn Backs on Trump as Merck, Intel Quit Counci
Jeff Green and Jared S. Hopkins, Bloomberg, August 15, 2017
Could America’s first CEO president lose America’s CEOs?
It was a question that came to the fore again Monday when first Merck & Co.’s Kenneth Frazier, then Under Armour Inc.’s Kevin Plank and Intel Corp.’s Brian Krzanich stepped down from a White House business group set up to advise Donald Trump.
While none mentioned the president, Frazier, one of the country’s most-prominent black chief executive officers, quit the council as Trump was being assailed for failing to quickly condemn white supremacists for deadly violence at a rally Saturday in Charlottesville, Virginia. Frazier said he was acting on a “matter of personal conscience.”
Frazier and his compatriots joined the ranks of Elon Musk of Tesla Inc., Bob Iger of Walt Disney Co. and Travis Kalanick of Uber Technologies Inc. — executives who walked away from business panels Trump touted, taking the unusual steps of publicly distancing themselves from a sitting president.
Who’s next? That’s the big debate, said Davia Temin, head of the New York-based crisis-management firm Temin & Co. “This conversation is viral in boardrooms right now.” […read more]
Trump versus Corporate America: Why corporations need to be the adults in the room
BNN, August 15, 2017
Davia Temin, president and CEO of Temin and Company, joins BNN to provide perspective on CEOs leaving Trump’s manufacturing council following the latest departure.
To watch the interview on BNN, CLICK HERE
More CEOs may ditch Trump
Axios, August 15, 2017
Merck & Co.’s Kenneth Frazier, then Under Armour Inc.’s Kevin Plank and Intel Corp.’s Brian Krzanich stepped down from a White House business group (Manufacturing Jobs Initiative), per Bloomberg’s Jeff Green. While none mentioned the president, Frazier, one of the country’s most-prominent black chief executive officers, … said he was acting on a “matter of personal conscience.”
As for Intel’s Krzanich, his Twitter account was peppered [yesterday] by pleas for him to quit the White House group.
Who’s next? Davia Temin, head of the New York-based crisis-management firm Temin & Co: “This conversation is viral in boardrooms right now.” […read more]
CEO Health: Shareholders Want to Know More
Lindsay Frost, Agenda, June 26, 2017
Newly minted CSX CEO Hunter Harrison is lauded as transforming the railroad game for Canadian Pacific and several other railroad networks. Although he took his post at CSX in March, investors were tasked with ratifying the $84 million pay package it would take to keep him. While considering the vote, shareholders voiced concerns about his health after a report was leaked noting that he has to work from home sometimes and uses an oxygen tank to help him breathe.
Harrison’s situation has put the question of materiality, and when and if to disclose CEO health issues, back in the spotlight. Considered the board’s responsibility, making health disclosures can be a difficult decision depending on the situation, sources say.
“[When boards are considering disclosing], they are caught in this world between privacy and HIPAA [Health Insurance Portability and Accountability Act of 1996] and material information,” says Davia Temin, CEO of strategy and communications consulting firm Temin and Company, who has served on multiple boards. “Clearly shareholders and analysts want the information immediately, and very often CEOs who are ill want more time [before disclosing]. Different companies have threaded the needle differently and walked that thin line differently.” Subscription required for full access. […read more]
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Trump CEO Brain Trust Huddles as Corporate America Splits
Justin Sink and Matt Townsend, Bloomberg | Quint, February 3, 2017
President Donald Trump has needled Mary Barra at General Motors Co. He’s troubled Doug McMillon at Wal-Mart Stores Inc. and gone after Boeing Co., once headed by Jim McNerney. Those business leaders, and about a dozen others, sat down on Friday with Trump to talk trade, regulation and more.
In his first two weeks as president, Trump has rewritten the Washington playbook for corporate America, as he has for U.S. allies. In the process, he has opened rifts between companies over how to approach matters ranging from taxes to immigration and revealed the first cracks in companies’ tentative embrace of him, drawing criticism from some of the chief executives who were in the room Friday morning.
The meeting is the latest in a series of White House events designed to allow Trump to solicit feedback from business leaders — and burnish his image as a can-do businessman ready to strike deals. The events usually start with pictures and video clips to feed the news cycle and then a closed meeting with the president and top aides.
After the photo ops is when it gets interesting, of course, and it could be up to Blackstone’s Schwarzman to keep things in order, said Davia Temin, founder of the crisis-management company Temin & Co. in New York. If he’s allowed to be in charge, he should run it like a board meeting, with vigorous but respectful debate.
“One model is a high degree of professionalism and politeness, even while being tough and entrenched in your questioning,” she said. But “some boards are different — some boards you have knock-down, drag-outs.” […read more]
Tackling Disruption and Convergence in 2017
Tony Chapelle, Agenda, January 9, 2017
The Center for Board Matters at accounting and management consulting firm EY has identified six main priorities that corporate boards are likely to focus upon in 2017. However, one of those topics, dealing with disruption and convergence, is perhaps the most vexing of problems boards will deal with this year, so Agenda has called on a group of experts to address this challenge. We asked one director and a handful of corporate governance experts to distill and offer advice on how boards can help their managers develop and implement competitive and effective strategies while the world bombards them with disruption and convergence.
Davia Temin, CEO of strategy and communications consulting firm Temin and Company, says boards need to pay attention to the evolution of convergence.
For example, almost all corporations have had departments or silos that traditionally focused on cyber security and risk management. They’ve also had traditional marketing departments. But now, the ability of a law firm or an online retailer to send and receive information securely has itself become a marketing issue. If clients don’t have assurances that a company has certifications or other indications of top-notch Internet protection, they may not use a company’s services or products.
More broadly, Temin says, with mainstream news and social media converging, it’s going to be important for boards to ensure that regular news is clearly differentiated from simple opinion.
In order for directors to get out in front of disruption scenarios, she says, “the board really needs to assure that the company strategy factors in all possible disruptions that they know of right now when it comes to products, to the business environment, to the business model and to consumer audiences.” […read more]
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