With stock market gyrations, inflationrising interest rateswar in Ukraine, divisive politics, and climate change making business survival ever-more challenging, the National Association of Corporate Directors (NACD) has picked an opportunity time to update its user manual forboard members.
The last time the membership group had issued a set of principles about the role and responsibilities of boards was in 2011, when corporate leaders were still reckoning with the global financial crisis. A new business ethic was growing, from b-corps to conscious capitalism, but it was far from mainstream. The end game was still focused on the shareholder—a.k.a. the stock price—full stops. Boards loaded up CEOs with stock options and equivalents with the idea of “pay for performance” ringing in their ears.
The rules are beginning to change, though.
A dynamic environment of social media, systemic risks, and deep uncertainty about the future has underscored the