Tune in tomorrow for the webcast – “Non-GAAP Disclosures: Corp Fin Speaks” – to hear Mark Kronforst, the Chief Accountant of the SEC’s Division of Corporation Finance and Dave Lynn of TheCorporateCounsel.net and Jenner & Block provide practical guidance about what to do now with your non-GAAP disclosures given Corp Fin’s CDIs and a year’s worth of Staff comment letters on the topic.
Today’s webcast is now back on as scheduled: “Secrets of the Corporate Secretary Department“…
CEO Succession: Increase in Proactive Disclosure
According to “The Conference Board’s” “CEO Succession Practices” report – which analyzes succession events among the S&P 500 – companies are becoming much more communicative about CEO succession plans:
Compared with a year earlier, in 2016 boards were 30 percent less likely to announce that the transition was effective immediately.
Communication practices more commonly include providing earlier notice of the CEO succession event, including the description of the role performed by the board of directors in the CEO succession process, and offering more details on the reasons for the transition.
Check out this handy infographic from Heidrick & Struggles for other notable findings, which include:
– Struggling retailers & wholesalers are driving a record-high succession rate for companies with low TSR.
– Stable succession rates of better-performing companies may indicate that increased scrutiny over executive pay and performance has started to produce results.
– Only six of the 63 CEO positions that became available in the S&P 500 in 2016 were filled by a woman.
– One out of 10 CEO successions in 2016 were navigated by an interim CEO, a role once used only in situations of emergencies and unplanned transitions.
– Only 6.4 percent of the successions in 2016 involved the immediate joint appointment of the new CEO as board chairman, as proxy advisors and the investment community increasingly demand independent board leadership.
More on “The Mentor Blog”
We continue to post new items daily on our blog – “The Mentor Blog” – for TheCorporateCounsel.net members. Members can sign up to get that blog pushed out to them via email whenever there is a new entry by simply inputting their email address on the left side of that blog. Here’s a sampling of entries:
– Boards: Portfolio Managers as New Directors
– LSE: Changes AIM Rules to Reflect “Market Abuse Regulation”
– PwC Violates Auditor Independence Standards – Yet Again
– US Foreign Bond Issuers: Fed Cracks Down on Form SLT Reporting
– Delaware Supreme Court Affirms Chancery’s Lack of Damages Award as Remedial Discretion
– Liz Dunshee