In the News–Corporate Governance
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On Tuesday, the number of members who have withdrawn from a White House advisory council grew to five, and executives including Wal-Mart Stores Inc. Chief Executive Doug McMillon criticized the president’s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]
Should Boards Foster Customer-Centricity?
Tony Chapelle, Agenda, June 13, 2016
Many corporate executives and board directors advocate the benefits of the corporate organizational structure known as customer centricity. Rather than organizing a business into product or regional units, about 30% of Fortune 500 companies have set themselves up according to customer segments.
Recently, panelists at the global conference for the WomenCorporateDirectors Foundation discussed the concepts of centricity, customer satisfaction, marketing, loyalty and retention.
Davia Temin, a strategy and reputation consultant and CEO of Temin and Company in New York, says there aren’t many alternatives to being customer-centric in the long run. “It used to be that whether you [just] paid lip service to customer service was between you and the customer,” she says. “But today, when someone walks out of your store and has a bad experience, they can go to Twitter, Facebook or Yik Yak. So the board’s governance muscles have to get strengthened around the customer service experience because it’s a reputational opportunity, but also risk.” […read more]
Educating boards
Larry Jaffe, SC Magazine, May 2, 2016
C-suites and boards of directors are increasing their knowledge of IT security risks and needs – before a breach happens. Larry Jaffee reports.
Cybersecurity clearly falls under board-level governance and oversight, notes Davia Temin, CEO of Temin and Company. Boards have rapidly adopted cybersecurity as an issue because they’ve seen the potential for trouble quickly.
However, not all boards have incorporated cybersecurity into their annual plans or oversight activities. The good news is that more and more are leaning in that direction after reading about high-profile breaches in the news. “It’s a very popular topic on the governance speaking circuit,” Temin adds. […read more]
Crisis of the Week: United Airlines Faces Turbulence Amid Federal Probe
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, September 21, 2015
This week’s crisis of the week takes a look at the statements and actions of United Continental Holdings Inc., which replaced its CEO and two of his top executives amid a continuing corruption investigation by federal prosecutors.
In a statement, the company said it decided to replace Mr. Smisek and the other two executives as a result of its own internal investigation into its dealing with the Port Authority. The airline’s board apparently decided to cut ties with Mr. Smisek a few weeks before the announcement of his departure. During a conference call discussing its latest quarterly results, the company said it wouldn’t comment further as the investigation is ongoing.
Looking only at what the company has said publicly in its statement and on the conference call, we asked the crisis experts to gauge how well United has handled this crisis.
“‘By the book,’ is how United Airlines said it conducted its investigation of former CEO Jeff Smisek, and by the book is how its board and new CEO have handled every communication regarding management changes. Communications have been textbook–word-perfect, well-vetted and bloodlessly on message. But there are times when ‘by the book’ is simply not enough to do the job, and this is one of them. Extraordinary measures are needed,” says Davia Temin. […read more]
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