In the News
“What Boards Need to Do to Preserve Their Relevance and Provide Value in the World of the New Normal”
Corporate Finance Review
July August 2010
By Karen Kane and Fred Steingraber
In their cover story for Corporate Finance Review, the authors investigate the causes of board dysfunction and illustrate ways for corporate boards to reclaim their reputation. To regain the trust of shareholders and regulators, boards will have to reestablish their governance authority. It requires a culture change, including an acknowledgement of the role of shareholders in the governance process and a recommitment to excellence. Directors will be required to reexamine and even revise board committees and committee work. This will require new skills and qualifications as well as more time and effort to understand the companies they serve, to provide effective oversight in representing the interests of shareholders, and to hold management accountable. Read full article by Corporate Finance Review
“Boards Need to Regain High Ground and Preserve Relevance”
Directorship Magazine
June/July 2010
In their column, The Director’s Chair, Karen Kane and Fred G. Steingraber describe the substantive changes boards need to make to regain the trust needed to re-establish their governance authority. This fundamental shift in the breadth and focus of board work will bring boards back to the proper oversight of management and focus on leadership development, corporate strategy corporate performance and risk enterprise which will also strengthening the enterprise itself. See the full article in Directorship . Or, download the article Director’s Chair June July
“Who Speaks for the Board?”
Directors & Boards
Second Quarter 2010
Karen Kane’s describes the importance of board communication in the Second Quarter issue of Directors & Boards magazine. In her article, “Communicating by Proxy Is No Longer Enough” she concurs with a number of others that Jim Kristie recruited to opine on the issue including Robert Dilenschneider, Jay Lorsch, Jeffrey Sonnenfeld, and Howard Rubenstein about the new skill of communication that boards must cultivate and the importance of getting communication help, which is a vital issue of board leadership. Read the Who Speaks article.
What Have You Done to Help Your Board with This Year’s Annual Meeting?
IR Alert
May 12, 2010
Addressing Investor Relations Officers, (IROs), Karen Kane asks if your board thinks it has “escaped” say on pay or other shareholder petitions and advises IROs to help directors see the opportunity for board-shareholder engagement. In this new era of transparency and disclosure, boards need to understand the quality of shareholder interactions and ensure that the company provides transparent, effective shareholder communication across multiple audiences including investors, brokers, owner research groups, employees, customers, and the community and public at large in this “Full Disclosure” commentary.
“Giving Boards Their Voice”
Briefings on Talent & Leadership 1Q 2010
The shift–from behind-the-scenes advisors to highly accountable public figures is a profound transformation that boards are only beginning to grasp. In this article for Korn Ferry International’s Briefings on Talent & Leadership, Karen Kane discusses the importance of board-shareholder communication. By establishing independent communication, boards and their companies may succeed in quieting dissenting shareholders and even winning the confidence of investors enabling companies to operate in the interests of the long term. Read article.
“Corporate Leaders at Risk as Feds Take Over”
January 9, 2010
Directors have an opportunity to demonstrate and communicate proactive leadership in restoring trust and sound governance, advise Fred G. Steingraber and Karen Kane in their opinion article published in the Houston Chronicle. “But, they need to move beyond the audit and accounting risks and an overall compliance mentality and look ahead to the larger issue of ensuring the long-term value of the enterprise. Directors are best positioned to create solutions. Read article.
Directors Risk Removal as “Vote No” Campaigns Threaten to Make the 2010 Proxy Season a Forum for Outrage over Executive Pay, New Shareholder Powers
Boards Can Regain Authority By Initiating Strategic Communications Programs Ahead of Proxy Season
CHICAGO, IL (December 29, 2009) –Widespread outrage over executive pay coupled with regulations strengthening shareholder poer will place some directors at risk of poor showings in “Vote No” campaigns and even removal in the 2010 proxy season, said Karen Kane, an expert in strategic board communications. Download News Release »
“Directors Seek to Combat Misperception of Board Role”
September 21, 2009
From Agenda
Karen Kane, president of Karen Kane Consulting, which advises boards on their communication strategies, says directors will need to adopt a more visible, public role in order to successfully deal with the consequences of public confusion and anger over the way some companies have been run.
“Boards have been invisible,” observes Karen Kane. “But after the bailout of iconic companies, boards are being held much more accountable. Directors need to speak up. They need to let shareholders and Congress know they are competent and effective. Boards can further their own interests by clearly stating their expertise, what they do, and how they bring oversight to the management of their companies.” Read article»
“Six Steps to Building Trust and Engaging Shareholders”
July 2009
By Karen Kane, Directorship.com
“Now more than ever, boards must convey how their work contributes to the strength and soundness of the enterprises they oversee. Consider that scrutiny of the boards is on the rise as taxpayers have essentially become phantom shareholders through the public bailout of the private sector. Unlike shareholders who may be more educated about the role of the board of directors, the public at large may not understand the function—and value—of the governance role. How do boards of directors build trust in this era of greater accountability?”read article»
“Catching Flak with Aplomb”
June 10, 2009
From Directorship
“The first rule when handling such vitriol is to keep your composure, say public speaking experts, and to resist the urge to fire back. “Parsons was described as polite and unflappable to those with concerns,” said Karen Kane, founder of Karen Kane Consulting, citing the Citigroup meeting as one of the most successfully managed angry shareholder situations in recent memory. “You need to go in being polite to shareholders,” she emphasized. read article»
“Best Practices for Board Communication”
May/June Issue 2009
By Karen Kane, The Corporate Board Magazine
“This annual meeting season will see investors hungry for answers as never before—and often angry about stock price meltdowns. Increasingly, shareholders are looking beyond the chief executive to the board of directors for assurance. Has your board laid the groundwork and developed the skills, counsel and technology to effectively “tell your story”?read article»
“How Boards Can Repair Public Trust in Corporate America”
April 6, 2009
From Agenda
While experts emphasize the need for boards to evaluate reputation with a long-term view, there are things they can do to improve their stature among the public in the short term. Boards can help restore public trust in their organizations and themselves through a strategic communications policy, according to Karen Kane, principal of Karen Kane Consulting and former board secretary for the Federal Reserve Bank of Chicago. Her firm advises boards on their communication strategy. She says it can be as simple as boards disclosing how often and how long they are meeting to help their companies through this difficult time. read article»
“Capping Compensation Won’t Solve Bank Crisis”
Sunday, February 22, 2009
By Karen Kane, The Houston Chronicle, Outlook
“A board with a strategic shareholder communication plan can use transparency and communication as effective risk management tools. Conversely, a board with its head in the sand pretending no one is looking is courting disaster or shareholder mistrust.” read article»
Board Communications Study
A Review of Board Communication Practices, and a Vision for Authenticity in Corporate Governance Download executive summary»
