Ambrose Bierce, the CEO of DictionAry, has been paid a lump sum amounting to three years' salary because DictionAry has been bought in a hostile takeover by its main competitor. For example, our interviewees on the boards of hi-tech start-ups and cyber security firms revealed that women, minorities, and younger board members often hold these coveted roles on boards in their firms and industries. A 2015 meta-analysis of 140 research studies of the relationship between female board representation and performance found a positive relationship with accounting returns, but no significant relationship with market performance. c. lower Simon Leagreet, the Chairperson and CEO of L-EVA Industries, Inc., has long been the major power at L-EVA. d. a variety of compensation plans for executives of foreign subsidiaries. b. risk undertaken by managers to earn stock options. This isnt a strong relationship, but its a good bit stronger than the relationship between board diversity and corporate performance. But it would also mean that investors think it is possible for one incompetent female director to drive down the profitability of the company while her male colleagues watch helplessly from the sidelines. What difference can Archibald expect? This is because women bring new insights and perspectives and increase the cognitive diversity of the board. If so, board gender diversity may be positively related to accounting returns, but not market returns. a. moving toward having directors from different backgrounds One means that is considered to improve the effectiveness of outside directors is d. Mr. Abercrombie should find significant need for his services in companies in tran-sitional economies. a. b. Interviewees who felt that their boards reflected this quality explained how all board members were able to speak openly and ask questions at meetings and, in doing so, they felt that all opinions were respected. primary focus is on maximizing shareholder value. And even when individuals who are minorities, tokens, or outliers speak up, the majority group members may discount their views. c. having the stock option plan designed by insiders on the board of directors who are familiar with day-to-day operations of the firm. d.independence of the committees on the firm's Board of Directors. Similarly, the relationship of top management team (TMT) gender diversity and company performance is statistically significant but very small. Women should be appointed to boards for reasons of gender equality, but not because gender diversity on boards leads to improvements in company performance. c. Borders' decision to increase the size of its board c. The state is becoming far less dominant in determining the strategies employed by most firms. Research suggests that boards of directors perform betterif a. the CEO is also the chairperson of the board ofdirectors. The slow progress on gender diversity has frustrated policymakers, industry groups, and institutional investors, many of whom have publicly advocated for inclusion of women and minorities among the top ranks of management. a. monitoring When executives have ownership positions or stock options with their employing firm, they are For a board comprised of lawyers, this might mean adding an engineer and a sociologist in the mix. a. the number of stockholders and the parties they represent. a. the roles of CEO and chairperson of the board of directors are usually combined. c. the firm's tax issues. Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(an) ____ director. a. risk that managers will behave opportunistically. Some research suggests, for example, that gender-diverse boards make fewer acquisitions than all-male boards (. a. Mr. Abercrombie will have a large market in Japan because the culture highly val-ues consensus decision making. d. outside directors own significant equity in the organization. Hed speak like, without taking any breaths for two hours on end., But even in hierarchical cultures, the CEO, Chairman, or lead director can help to create a more open communication environment. d.tying the compensation of CEOs to measur-able financial criteria. But our research suggests that shifting the diversity discourse away from gender to other dimensions of expertise and experience might, in fact, help women and other underrepresented groups for example, instead of saying we have appointed a female director the focus should be we have appointed an expert on China. With less emphasis on gender, female appointments might one day no longer be perceived as checking a social performance box, and signal nothing about firm preferences other than its commitment to hiring the best people for the job. a. increases in executive compensation. c. require Mr. Leagreet to personally certify the firm's financial reports. The best way to get the board to trust the executive team is to keep them involved. There was, however, a difference in the perceived goals of the company. However, rigorous, peer-reviewed academic research paints a different picture. a. firms with unethical top executives You know you might have somebody from HR on the board. a. unsubstantial profits c. the corporation has greatly exceeded performance expectations. Diversity wins is the third report in a McKinsey series investigating the business case for diversity, following Why diversity matters (2015) and Delivering through diversity (2018). 5. mechanics and neural control of contraction, Information Technology Project Management: Providing Measurable Organizational Value, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. b. the board includes employees as voting members. The Vorstand is elected by the firm's employees. Which of the following statements is most likely to be TRUE? But, thats impossible here; we cant randomly assign board members to companies. b. long-term firm performance is more easily manipulated by the board of directors through financial and accounting methods than are shorter-term measures of firm performance. 25 a. ATP has been the initiator of several hostile takeovers in the last two years. a. significant pay reductions for many corporate CEOs a. going to actively defend their firm from takeover attempts. b. Japanese firms will have little interest in Mr. Abercrombie's specialty because these skills are already practiced at a high level. "An agency relationship exists when one party delegates: "Institutional owners are: d. All of these choices would increase involvement. d.risk managers will not find a new top management position if they should be dismissed. "International Food Services (IFS) has a contract with the Marines to supply meals for it troops in Iraq and other foreign assignments. Despite persistent efforts to tackle underrepresentation of women on corporate boards, most boardrooms remain mostly male. c. the board is homogenous in composition. c. Institutional investors disapprove of long-term executive incentive plans and they may sell their blocks of stock in CamCell. b. CamCell may have to over-compensate its CEO in order to offset the personal risk a CEO would undertake under this plan. Commentators often suggest that corporate boards that include women will make better decisions than boards that include only men. d. dependent. b. increasing the concentration of ownership of large U.S. firms. c. public pension funds a. available to comment to external analysts. b. typically under-performing their industry. Many of our interviewees suggested that their boards had made progress on gender diversity but not on other forms of social diversity such as race, nationality, and age. d.requiring that outside directors be truly objective by having no ownership interest in the firm. They also raised. a. greater experience in a wider range of industries, lessening of managerial employ-ment risk d.outsidedirectors ownsignificantequityintheorganization. Research suggests that firms with ____ perform better, especially when collaboration among top management team members is important: A primary objective of corporate governance is to: Which of the following is a FALSE statement about corporate governance? b. a weak board of directors. d. Corporate governance is best achieved with a board of directors with strong ties to management. The women named to corporate boards may not in fact differ very much in their values, experiences, and knowledge from the men.. c. require Mr. Leagreet to personally certify the firm's financial reports. Chapter 10 (Multiple Choice) Flashcards | Quizlet Consider two recent meta-analyses that have been conducted to summarize prior research on the topic. Other research has found no relationship to performance at all. Consequently, the board has decided on an incentive plan that involves payout based on the firm's performance five years in the future. d. tying the compensation of CEOs to measurable financial criteria. a. b. increasing the concentration of ownership of large U.S. firms. d.For legal reasons, the board cannot consider the interests of CalPERS over the interests of its top executives. b. inside c. remains constant. Consequently, the board is: "Research suggests that boards of directors perform better if: b. b. positively related to It might be unconscious bias. Institutional owners are y=2x+8;y=12;1x2. Which of the following statements is about corporate governance in Germany is FALSE? b. c. safer strategies with more focused diversification for the firm. All of the following are unintended consequences of the Sarbanes-Oxley Act EXCEPT: Who is ultimately responsible for the corporate climate that resulted in this wrongdoing? The CEO of Skyco, a publicly-traded company that has been earning below-average returns, has been publicly criticized by shareholders for persuading the board of directors to give her inter-est-free loans, for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there, and for excessive stock options. q:q:q: The air co nditioner is working. Still, given all the studies of board diversity and company performance that have been conducted to date, it seems very unlikely that new research will reveal a strong, clear relationship between board diversity and company performance. b. free cash flows c. the manager's supervisory needs are lowered, the manager is allowed greater time to oversee a wider range of activities Mr. Abercrombie is considering expanding his consulting practice overseas. The chapter Opening Case suggests that ___________ is (are) frequently blamed for high CEO pay during periods where corporate performance has been poor. Historically, ____ have been at the center of German corporate governance structure. d. The gap in compensation between CEOs in public and private companies is in-creasing. Increased regulation in the financial sector has increased the cost of mounting hos-tile takeovers. Does this mean that we should not promote women to corporate boards? d.a silver handshake. She said, Having a diversity on the board does not just mean having a bunch of CEOs or a bunch of capitalists.Having board members with different roles whether its a CIO or a CTO or you know independent board directors that come from a different background is really good. The average correlation is .15. Based on these findings, we worked with Mike Fucci, Chairman of the Board at Deloitte, to develop recommendations for how board chairs and directors can create more egalitarian board cultures and improve their governance. German executives are not dedicated to the maximization of shareholder value largely because a. Further, there is no evidence available to suggest that the addition, or presence, of women on the board actually causes a change in company performance. c. the board is homogenous in composition. Monitoring by shareholders is usually accomplished through b. accounting firms are forbidden from providing both auditing and consulting services to clients. His current boards are shifting to a different approach: a process of assessment where you periodically look at the skill sets that you would ideally want on the board, given the business its in, and then the skill sets you have, and you identify any missing. performance of boards of directors and how various studies have tackled this challenge. A majority of the directors are concerned that while Mr. Leagreet has been responsible for the firm's earning above-average returns, that he has been displaying a tendency toward personal extravagance at the firm's expense. "Top executives resist tying their compensation to long-term performance of the firm mainly because: c. determined by the size of the firm. Researchers have also studied the relationship between board diversity and various board decisions and practices such as acquisitions, board monitoring and dividend payouts (Ararat, Aksu, Cetin, 2015; Chen, Crossland and Huang, 2016; Chen, Leung, & Goergen, 2017). At the board of directors level, more ethnically and cultural diverse companies were 43% more likely to see. a. safer strategies with greater diversification for the firm. To make diverse boards more effective, boards need to have a more egalitarian culture one that elevates different voices, integrates contrasting insights, and welcomes conversations about diversity.
Christina Whittaker Missing, Articles R