WomenCorporateDirectors launches global institute

The WomenCorporateDirectors Global Institute in New York has launched its WCD Thought Leadership Council (TLC) to advance better corporate governance practices. The Council, chaired this year by executive compensation board advisors Pearl Meyer & Partners, called on compensation committees to ensure that pay is tied to their company’s specific business, human capital and cultural objectives.

To achieve this the TLC warned that it depends, in part, on committees being brave enough to exercise the courage to make difficult and potentially unpopular decisions that are right for the business. Susan Stautberg, CEO & co-founder and global co-chair, WCD echoed this theme stating, “Great companies promote inclusion, candor, courage, and cohesion in the boardroom… [They] need to rejuvenate their boards to maintain their vibrancy and effectiveness.”

In addition, the Institute has also launched the WCD Family Business Council, designed to bring stronger governance and create long-term value in family-owned businesses, which make up more than a third of Fortune 500. The Council will offer programmes for women CEOs and directors of family companies, research with search firm and behavioural expert to identify the challenges and specific skills needed for such companies and director introductions for businesses seeking outside directors.

An estimated 80% of companies globally are family-owned, but only about one-third of them survive into the second generation, indicating the need for guidance in terms of how to tackle issues and how to best work through these to create sustainable and dynamic organisations.

Henrietta Holsman Fore, global co-chair, WCD, CEO and chair, Holsman International, and director, Exxon added, “Family companies are undergoing a real transformation when it comes to their corporate governance. There is a genuine desire to implement governance best practice, but also to learn how to balance this against the wishes of the family stakeholders, who may represent multiple generations.”

This summer, WCD will also partner with Spencer Stuart, Groysberg, and Bell for a global board director survey and as part of the study, will explore particular differences and similarities between publicly-owned company boards and family-owned/private company boards.