What’s Delaying Boardroom Diversity
A Wrinkle in Push for More Diverse Directors
Business leaders, investors and regulators are all pushing to make corporate America’s boardrooms more diverse. But as a Salesforce executive learned, there are sometimes hidden barriers to doing this, Andrew writes in his latest column.
Niki Christoff sought to join the board of the publicly traded company, He told Andrew. But Salesforce only allows those who report directly to the company’s CEO, Mark Benioff, to become a director. (As senior vice president for strategy and government relations, she was not qualified.) She appealed to Mr. Benioff, but was reprimanded. Ms. Christophe accepted the board role anyway – and was fired.
Salesforce’s position is not unique. Many large US companies do not allow workers to move out of their highest ranks to join the Outer Board. This is a problem, Andrew writes: “With so many employees trying to remove promotion barriers on their own employers, it creates a kind of systemic barrier to diversifying in the boardroom.” Statistics show that when women and people of color are placed on a board, they are more likely to become directors for the first time than white men, are less likely to be current or former CEOs, and are younger. Huh.
As Ms. Kristoff told the Sales Council General Counsel, “Mark is directly told by some women and people of color that those groups have a disproportionate influence.”
The policy complicates efforts to diversify corporate boards. California law now requires companies incorporated in the state to have at least one female director, and both Nasdaq and Goldman Sachs have announced requirements to select more diverse candidates as a condition of working with boards. Now women are subject to only 30 percent of directors in the largest listed companies, while ethnicity covering about 20 percent is underlined. Progress in moving those numbers has been slow.
Company status: This can distract employees, and risk conflicts of interest or reputational concerns. (Ms. Kristoff wanted to join the board of the Cannabis Company, MedMen.) “I know that all but one of our 57,000 employees would like to join the board,” Mr. Benioff told Andrew. “Unfortunately it is not sustainable.”
Opportunity: Involving employees on the board allows them to lead better in their day job. As executive search consultant James Drury told Andrew, “As long as they sit on a board director’s seat, they don’t really understand the nature of the questions being asked in their own boardroom.”
What’s going on over here
Winter storms cause oil prices to rise rapidly. Demand for heating fuels increased as temperatures dropped across the US and threatened to cut oil and gas production in Texas. Texas benchmark for crude oil removed Above $ 60 a barrel, While Brent crude climbed to a 13-month high.
The WTO chooses its first female leader. World Trade Organization selected Nigeria economist, Ngozi Okonzo-Iweala Become director general of On March 1, she faces daunting challenges, including rising protectionism and a dispute-settlement system that remains crippled after challenges from the Trump administration.
Morgan Stanley can place bets on bitcoin. Counterpoint Global, the firm’s $ 150 billion unit, weighs in on whether to allow its customers to invest in cryptocurrencies, Bloomberg Report. This is the latest sign that Wall Street giants Under pressure To start accepting bitcoins and other digital currencies.
Parler returns online. Conservative social network Reopened, After being hacked by Amazon and other tech giants. It is a small web-hosting provider Skysilk, which said it intended to preserve free speech.
Citigroup reduced its late CEO’s compensation by 20 percent. The board of the bank said it was Michael Corbett’s salary reduced “More than $ 19 million over risk and control concerns”, continuing issues such as wiring $ 900 million to Revlon’s creditors from the Wall Street firm’s fault.
Special: IBM sets a deadline for net zero emissions
The consensus among scientists and supporters of the Paris Climate Agreement – including the Biden administration – is that to limit global warming, greenhouse gas emissions must be reduced from zero to 2050. Hundreds of companies have promised to meet or beat this deadline, and today IBM will say its goal of reaching net zero emissions is 2030, making it “ahead” of the international schedule.
Tech giants focus on “real cuts” in emissions and rising clean energy use In over 175 countries where it operates. It pledges to achieve net zero without relying on “procurement of unrelated, unrelated renewable energy certificates” and will set interim deadlines to force accountability. These goal posts can help IBM escape Criticism Ben Cushing of the Sierra Club told of the bank’s plan Bank of America recently faced when it announced its target to be zero by 2050. “No destination without a complete road map is going to cut it.” Specific.
IBM’s announcement raises some difficult questions, Such as how to use technology to reduce the carbon footprint of rapidly growing services such as cloud computing. And some of the company’s proposed solutions – such as carbon capture – has faced criticism for being less feasible and scalable than other means.
“McKinsey I served was – in my experience – an honorable institution. How can this happen to my dear employer? “
– Tom Peters, management guru and former McKinsey partner, in A Financial Times Op-Ed About the role of counselor in opioid crisis
NBA star Steph Curry. Grammy winning singer Sierra. Baseball Manager Billy Bean. What do they have in common? SPAC, Of Course. We asked why so many celebrities are getting into Wall Street’s latest trend.
star power. Bringing in a celebrity to promote a product is not new. SPAC’s sponsors and other early investors appreciate the power of discussion, as demonstrated by the recent meme-stock frenzy. (Now account for retail traders About 20 percent of US equity volume, Double the share of a decade ago.) This year the first day rally in SPAC listings is going on More than ever.
A potential disadvantage for SPAC that attracts a lot of speculative retail investors is that those who may not be interested come when it comes time to vote their shares to approve the acquisition; Merger proposal with SPAC Chargepoint Recently the process failed to reach a quorum of shareholders, delaying the process.
who all are there. Lead investors are sending their address books to any celebrities they know to get into deals. Bankers are sometimes brainwashed to add to transactions through their wealth management weapons. Hedge funds, which buy early on empty-check listings, are lobbying to get a high-profile name, so it gets cut off from the noise. (Bankers speculate that Super Bowl MVP Tom Brady will be the ultimate celebrity SPAC partner of the moment.)
Many bankers, we should note, are disappointed with the celeb inflow, worried that it is a sign of excess that could stain SPAC when the bubble bursts. (Recall the star-backed frenzy around “Initial coin offering“Joe was attracted to the investigation a few years ago by the SEC,” said one banker. “It’s like reality television and low-grade finance.”
In other SPAC news: Bernard Arnault, Billionaire president of LVMH, is listing an SPAC in Amsterdam to target a deal in Europe’s financial services sector; Li cycle, A company that recycled lithium-ion batteries, is reportedly merging with SPAC in a $ 1.7 billion deal; And venture capital firms Khosla Ventures Three SPACs filed for a day to raise a combined $ 1.2 billion.
Vivendi plans to include its Universal Music Group division by the end of the year into a publicly traded company on the Euronext Exchange. ()Hollywood reporter)
The South Korean e-commerce giant, Kuppang, applied to go public in the US and raised billions. ()Bloomberg)
European banks are finally using the epidemic to clean up their businesses. ()WSJ)
Politics and policy
The White House and the Fed are more concerned about doing little than the effects the economy can have on inflation. ()NYT)
Brian Desse, head of the National Economic Council, has received praise for his efforts to win support for the White House’s stimulus plan – and criticism for not doing enough. ()Political trickster)
Biden Presidential Campaign’s Donors Plum Ambassador is expecting an appointment, but many are getting cold shoulder. ()Vapo)
Clubhouse is an audio social network Suddenly removed And the classic Silicon Valley faces growing pains. Meanwhile, questions are being raised about Data privacy of Chinese users. (NYT, Stanford Internet Observatory)
The government’s conflicting lawsuits against Big Tech companies have opened the door for a host of private litigation from people like the operator of a small sweepstake website. ()NYT)
Automakers, governments and investors are investing money in the race to develop electric car batteries. ()NYT)
The best of the rest
Top business schools such as Harvard, Wharton and Stanford have dropped this year’s MBA ranking, temporarily shaking off too many lists. ()WSJ)
Billionaire Alibaba co-founder Joe Tsai was reprimanded when he tried to finance a bubble for the Ivy League lacrosse, pressuring schools to resume college sports. ()WSJ)
White House officials allegedly told Vice President Kamala Harris’s niece to stop using her aunt’s likeness on her brand merchandise. ()La times)
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