NACD - National Association of Corporate Directors
Directorship Magazine January/February 2018 Issue

Table of Contents

January/February 2018



How Boards Can Create Lasting Value Through Strategic Project Oversight

In the following anonymized, real-world example of ABC Inc., we examine the consequences of poor board oversight in the execution of a strategic project, which brought the company to the brink of bankruptcy.
by Antonio Nieto-Rodriguez and Ludo Van der Heyden

The 2018 Board Agenda

Although the year has just begun, many experts are predicting disruption.
by Judy Warner

Public Company Board Priorities for 2018

To understand how boards are planning to strengthen their governance practices in this volatile, uncertain business environment, we asked about their top improvement priorities over the next 12 months.
by Friso van der Oord

A World of Risk in a Nutshell

Describing the current business risk environment as turbulent would be a gross understatement.
by Jesse Rhodes

Governing Innovation: It’s Not an Oxymoron

As many companies are discovering, innovation is imperative for ensuring that a business is able to compete in today’s turbulent marketplace.
by Elaine Eisenman and Melissa Means

Top Issues for Audit Committees in 2018

Make the most of the audit committee’s time together.
by Jose R. Rodriguez


CEO’s Letter

Leading Indicators

The business environment is changing so rapidly that, to quote the immortal Yogi Berra, “The future ain’t what it used to be.”
by Peter Gleason

Editor’s Note

Dire Warnings

When we were mulling over cover artwork for this issue that would convey the experience of being a director in an environment that has grown increasingly unpredictable, our editorial team agreed that surrealism fit the bill.
by Judy Warner

The Director’s Chair

The Innovation Era’s Implications For Boards

We are living in an era of unprecedented disruption and innovation that is driving the exponential growth of game-changing technologies.
by Maureen Conners

Need to Know

Need to Know

A New Era in Global Securities Fraud Litigation, New SEC Commissioners, More.
by Katie Swafford

NACD Board Leadership Fellow

Bonny Simi

Multitalented. Intellectually voracious. Boardroom Olympian.
by Jesse Rhodes


Perspectives on Leadership, Values, and Board Service

Madeleine K. Albright reflected on the current state of world affairs and her experiences as a board director in October when she was interviewed at NACD’s Global Board Leaders’ Summit.
by Judy Warner


AICPA Framework Aims to Simplify, Strengthen Cyber-Risk Oversight

Directors walked away from this Roundtable with a better sense of the practices boards are already using, and how the AICPA’s SOC for Cybersecurity and other frameworks can provide additional guidance.
by Katie Swafford

Peer Exchange
Leading Minds of Governance

Governance Experts Parse the Board’s Role in Overseeing Company Culture

Company culture and building cyber resiliency were top-of-mind issues.
by Judy Warner

Director Development

Why Wait to Retire?

Advice on starting board service while still at work.
by Karen Kaplowitz

Entrepreneurial Governance

Considerations for High-Growth Company Boards in the New Year

In the year ahead, boards of high-growth companies will likely be considering some of the critical issues outlined below that are unique to their ecosystems.
by Adam J. Epstein


The Argument for the Creative Destruction of Scale

A venture capitalist shares his vision of an economy dominated by personalization.
by Katie Swafford

Private Company Insights

Getting a Start-up CFO Up to Speed

Developing a relationship with the CEO will be key to the CFO’s success, but shaping interactions with directors is similarly critical for growing the company.
by Salvatore Melilli

Small Talk

Small Talk

Amusing news to get the conversation started.
by Jesse Rhodes



Cyber-Risk Oversight: Moving From Weak Spot To Sweet Spot

Review five steps that corporate directors can take to improve their understanding and management of cyber risk.
by Kelly Bissell


Thriving Amid Digital Disruption

Organizations that don’t merely survive but thrive are focused on their people and laser-focused on taking data-driven actions, not just blindly importing best practices from others.
by Ilya Bonic

Pay for Performance

Performance-Based Long-Term Incentives: What Have We Done?

Executive incentive design has grown incredibly complex. Boards should consider simplifying by aligning pay with long-term stock price performance.
by Bob Romanchek

Executive Compensation

It’s Time to Think Less Conventionally About Long-Term Incentive Plans

Taking a different approach to compensation plan design may help to better position a company in a swiftly changing marketplace.
by Dayna Harris

Digital Disruption

The Board’s Role in Shaping Digital Transformation

Boards play a critical role in the digital transformation journey by bringing expertise, judgment, healthy skepticism, and concern for long-term value.
by Deborah DeHaas and Andy Main