The Handbook of Board Governance

Foreward by Bonnie Lysyk, MBA, FCPA, FCA, LPA, ICD.D

Preface

About the Editor

1 The Board Governance Handbook: An Introduction and Overview

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

Part I: Hiring, Evaluating and Terminating the CEO

2 CEO Succession Planning

David F. Larcker, BS, MS, PhD, and Brian Tayan, BA, MBA

3 Incrementalism Is Not Going to Work

Raj L. Gupta, BS, MS, MBA, and Dan Bigman, BFA

4 Model President and CEO Position Description

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

5 Model President and CEO Annual Performance Evaluation and Incentive Compensation Policy

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

6 Board Oversight of Possible CEO Misconduct

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

7 Model CEO Succession Planning Charter

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

Part II: Strategy and Investors

8 Three Dilemmas for Creating a Long-Term Board

Ariel Fromer Babcock, BA, CFA, Robert G. Eccles, SB, SB, AM, PhD, and Sarah Keohane Williamson, BA, MBA, CAIA, CFA

9 Pension Fund Governance: Working Under Tension

Bryan Campbell, PhD, and Michel Magnan, PhD, FRSC, FCPA Auditor, FCA, ASC, CDir

10 A Critique of the Investment Fund Governance Regime in Canada

Andre Fok Kam, BSc, MBA, FCA

11 3rd Stage Corporate Governance: Investors and Companies Divided by a Common Language

Jon Lukomnik, BA, and James P. Hawley, BA, MA, PhD

Part III: Technology Governance

12 Technology and the Corporate Board: Critical Considerations Going Forward

Gary L. Evans, Dip CS, BA, Hons BComm, MBA, PhD

13 Questions the Board Should Ask About Artificial Intelligence

Timothy E. Storus, LLB, ICDD

14 Artificial Intelligence Governance Standards

Sam De Silva, LLB, BMS, MBS, DBA, FCIPS, CITP, FBCS, FRSA, and Barbara Zapisetskaya, BA, LLB

15 Fair Warning Has Been Given: What Do Directors Need to Do Now to Respond to Cyber Risk?

Lloyd Komori, BA, Dip IT, CDir, ACC, HRCC

16 Cyber Risk from an IT Leader's Point of View

Michael Castro, CDir, ASC, MBA

17 Cyber Legislation, Standards and Practices: An Overview for Directors

S. David Craig, PEng, MBA, CRISC, ICDD

Part IV: Environment, Social and Governance

18 Environmental, Social and Governance Issues and the Board

Cynthia E. Clark, BA, MA, PhD

19 ESG's Growing Pains

Nell Minow, BA, JD

20 Shareholders, Stakeholder, and Tangible and Intangible Capitals

James E. Nevels, AB, MBA, JD, LLM

21 Responsible Boards for a Sustainable Future: Not ESG but G(EES)

Yylmaz Argueden, BS, PhD, and Gizem Argueden, BSc

22 Board Oversight and Climate Change: What Directors Need to Know

Patricia A. Koval, BA, JD, MBA

23 Business Reconciliation: Calls to Action # 92 Board and Business Imperative

Gary L. Evans, Dip CS, BA, Hons BComm, MBA, PhD, Corinne Chappell, MEd, MEd, EdD, and David D. Varis, BA, MA

24 CEO Political Activism: Corporate Governance and Ethical Dimensions

John M. Holcomb, BA, MA, JD

25 Business and the Social Agenda: C-Suite Activism, Corporate Responsibility, Workplace Trust and the Board's Role

Sally J. Curley, BA, MBA, IRC, and Carol Nolan Drake, BA, JD

26 A CPA's Primer on EDI: What Directors Should Know About Equity, Diversity and Inclusion Audits

Romi-Lee Sevel, MFAc, CPA, CA

27 Making Diversity Work

John Zinkin, BA, MSc, and Chris Bennett, MBA

28 An Introduction to Regenerative Governance

J. Lyn McDonell, BA, MA, FCMC, CDir

Part V: Financial Governance

29 Financial Literacy and Audit Committees: A Primer For Directors and Audit Committee Members

Jason Masters, BEc, FAICD, PFII

30 What Every Director Needs to Know About Insolvency

Virginia Torrie, JD, LLM, PhD

31 Ten Tell-Tale Signs of Possible Fraud: A Director's Primer

James Hunter, FCPA, FCA

32 Scary Financial Reporting Issues for Directors

Dr. L.S. (Al) Rosen, FCA, FCMA, FCPA, CFE, CIP

Part VI: Emergency and Crisis Governance

33 Considerations for Emergency Board Succession Planning Under the Worst Case Scenario

Jack L. Rozdilsky, PhD

34 COVID-19 & Beyond: The Persistence of Intersectionality in Management: Reflections For Management In A Post-Pandemic World

Richard Gasparini, CM, CIM, CMGR, FCMI, FSALS, FInstLM, FRSA, BA, MBA, LLM, JD, PhD

35 Preparing for Governance of Complex Disasters: Social Dimensions, Knowledge Systems and Systemic Mitigations

Eric B. Kennedy, BKI, MSc, PhD

36 Disaster Management and Risk Assessment

David Etkin, BSc, BEd, MSc

Part VII: Risk Governance

37 Risk Oversight For Directors: A Practical Guide

Stephen J. Mallory, ICDD, FCIP, CRM, BA

38 Risk Governance: Leading Practice and Demographic Impacts

Ingrid Robinson, MFAc, BComm, CPA, CIA, CRMA

39 Board Risk and Responsibility Under Regulatory and Criminal Law

Norm Keith, BA, JD, LLM, CRSP

Part VIII: Human Capital and Compensation Governance

40 Winter is Closer: The Approaching ESG and Human Capital Management Reporting Storm

Solange Charas, BA, MBA, PhD, and William L. Prickett, BA, JD

41 Measuring and Assessing Employee Value Added: Board Oversight of Human Capital

Stephen F. O'Byrne, BA, MS, JD

42 Missing in Action No Longer: Why Human Resources is Integral to the Corporate Board Agenda

Jay A. Conger, BA, MBA, DBA, and Edward E. Lawler III, BA, PhD

43 Questions Boards Should Discuss Before Adding or Modifying ESG Goals in Executive Incentives

Patrice Gelinas, ASA, CFA, BSc, MBA, PhD

44 Measuring and Improving Pay for Performance: Board Oversight of Executive Pay

Stephen F. O'Byrne, BA, MS, JD

45 Lawyers' Advice to Directors on Overseeing Executive Pay

Howard Levitt, BA, JD, and Allyson Lee, BSc, MSc, JD

46 The Effective Compensation Committee

Steven E. Hall, BA, MBA

Part IX: Legal, Ethical and Conduct Governance

47 Model Individual Director Position Description

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

48 Fifty Question Areas When Conducting a Governance Audit or Investigation

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

49 Model Director Code of Conduct and Conflict of Interest Policy

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

50 A Board's Responsibility for Enterprise Risk and Cultural Health: A Closer Look at Chiberl Health

Sally J. Curley, BA, MBA, IRC, and Carol Nolan Drake, BA, JD

Part X: Board Leadership

51 The Changing Nature of the Board Chair's Role

Parmi Natesan, BCom, BCom Hons, CA(SA), CD(SA), and Prof. Prieur du Plessis, BSc, BHons, MBA, IDP, CD(SA), DBA

52 Model Chair of the Board Position Description

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, Ph

53 Model Committee Chair Position Description

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

54 Model Board of Director Guidelines

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

55 Mission-Critical Checklists for Directors

Michael Useem, BS, MA, PhD

56 Model Guidelines for In Camera and Closed Sessions of the Board of Directors and Committees of the Board

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

57 Asking Good Questions as a Director

J. Lyn McDonell, BA, MA, FCMC, CDir

Part XI: Board Structure, Composition and Effectiveness

58 Re-empowering the Control Function of Boards

Marie-Soleil Tremblay, BAA, MBA, PhD, FCPA, FCA, and Bertrand Malsch, MBA, MSc, LLB, BCL, PhD

59 Administering a Director Competency and Attribute Matrix

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

60 Wisdom and the Board: Seeking and Developing Wise Leadership

Chris Anstead, BA, MA, PhD, CDir

61 Model Director Orientation Policy

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

62 Model Director Education Policy

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

63 Understanding Groupthink to Manage Teamwork Effectively Within Boards of Directors

Sylvie St-Onge, BAA, MSc, PhD, ASC, CRHA Distinction Fellow

64 Groupthink and its Impact on Board Work

Sue Owen, HBSc, MHSc, CHE, and Victoria Davis, BSc, MSc, PhD

65 The Seasons of a Director's Effectiveness

Jill Brown, BA, PhD, Ann Mooney Murphy, BS, MBA, PhD, and Andrew Ward, BSc, MBA, PhD

Part XII: Not-for-Profit, Private and State-Owned Enterprise Governance

66 A Primer on Charitable and Not-for-Profit Organization Governance

Donald J. Bourgeois, BA (Hons), LLB

67 Some Observations on the Governance Challenges of Boards of Directors of Small Not-for-Profit Organizations

Suzie O'Bomsawin, MBA, ASC, and Stephane Rousseau, LLM, SJD, AdE

68 The Best of Boards, The Worst of Boards: The Not-for-Profit Experience

Adam Quinton, BA, MA, MBA

69 Model Fundraising Best Practices for Not-for-Profit Boards of Directors

Stephanie Cory, CAP (R), CFRE, BS, MS, Med

70 Advice for Current and Prospective Directors of Start-ups and Early-Stage Companies

Steve Chan, BA, MA, MBA, and Adam T. Humann, BA, JD

71 Data Protection and the Cost of Compliance: The Reality of Small and Medium-Sized Enterprises

Talles Vianna Brugni, BSc, BBA, MBA, MSc, PHD, and Flavia de Oliveira Rapozo, MSc

72 The ABCs (Agencies, Boards, Commissions) of Government

David Tsubouchi, BA, JD, LLD, DSLitt, CDir

Part XIII: International Corporate Governance

73 External and Internal Corporate Governance Mechanisms in Emerging Markets

Natalie Tershakowec, BCom, JD

74 Making the Most of Board Evaluations: An Overview of Board Evaluation Practices in the U.S. and Globally

Anthony Goodman, MA, and Sarah E. Oliva, BA, MBA

75 Evaluations That Enhance Board Effectiveness

Richard Fields, BA, JD

76 Cross-Border Corporate Governance

Hari Panday, FCGA, FCPA, ICD.D, NACD.DC

77 ESG Disclosure by Privately Held Companies: Learning From a Case Study of a Brazilian Joint-Venture

Talles Vianna Brugni, BSc, BBA, MBA, MSc, PhD, Christiane Carvalho Veloso, MM, Vania Maria de Costa Borgerth, MSc, MBA, PhD, Juliana Costa Ribeiro Prates, BSc, MSc, and Valcemiro Nossa, PhD

78 The Russian Corporate Governance Story

Alexander A. Filatov, PhD

Conclusion

Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD

Index