In the newly revised third edition of The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not for Profit Board Members, award-winning professor and lawyer Dr. Richard Leblanc delivers a comprehensive overview of all relevant topics in corporate governance. Each chapter is written by a subject matter expert working in academia or industry and illuminates a different area of board governance: value creation and the strategic role of the Board, risk governance and oversight, board composition and diversity, the role of the board chair, blind spots and trendspotting in the boardroom, audit committee efficacy, and more.
This latest edition contains updated coverage of a wide variety of key topics, including: - Governing, auditing, and working from home, as well as conducting virtual and hybrid meetings - New and necessary skillsets for directors, including contemporary environmental, social, and governance considerations for firms - Diversity, equity, and inclusion issues impacting boards and firms, as well as the risks posed by corruption, organized crime, and cyber-crime
An essential resource for board members and directors of organizations of all kinds, The Handbook of Board Governance is also an important source of information for managers and executives seeking greater understanding of the role of the board in the day-to-day and long-term management of a modern firm.
Table of Contents
Foreword by Bonnie Lysyk, MBA, FCPA, FCA, LPA, ICD.D xix
Preface xxi
About the Editor xxv
1 The Board Governance Handbook: An Introduction and Overview 1
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
I Hiring, Evaluating, and Dismissing the CEO 33
2 CEO Succession Planning 35
David F. Larcker, BS, MS, PhD Brian Tayan, BA, MBA
3 Incrementalism Is Not Going to Work 55
Raj L. Gupta, BS, MS, MBA Dan Bigman, BFA
4 Model President and CEO Position Description 63
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
5 Model President and CEO Annual Performance Evaluation and Incentive Compensation Policy 71
Richard W. Leblanc, FCMC, CMC- AF, BSc, MBA, LLB, JD, LLM, PhD
6 Board Oversight of Possible CEO Misconduct 87
Richard W. Leblanc, FCMC, CMC- AF, BSc, MBA, LLB, JD, LLM, PhD
7 Model CEO Succession Planning Charter 109
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
II Strategy and Investors 117
8 The Three Dilemmas for Creating a Long- Term Board 119
Ariel Fromer Babcock, BA, CFA, Robert G. Eccles, SB, SB, AM, PHD Sarah Keohane Williamson, BA, MBA, CAIA, CFA
9 Pension Fund Governance: Working Under Tension 151
Bryan Campbell, PhD Michel Magnan, PhD, FRSC, FCPA, Auditor, FCA, ASC, CDir
10 A Critique of the Investment Fund Governance Regime in Canada 163
André Fok Kam, BSc, MBA, FCA
11 Third Stage Corporate Governance: Investors and Companies Divided by a Common Language 183
Jon Lukomnik, BA James P. Hawley, BA, MA, PhD
III Technology Governance 195
12 Technology and the Corporate Board: Critical Considerations Going Forward 197
Gary L. Evans, Dip CS, BA, Hons Bcomm, MBA, PhD
13 Questions the Board Should Ask About Artificial Intelligence 233
Timothy E. Storus, LLB, ICDD
14 Artificial Intelligence Governance Standards 243
Sam De Silva, LLB, BMS, MBS, DBA, FCIPS, CITP, FBCS, FRSA Barbara Zapisetskaya, BA, LLB
15 Fair Warning Has Been Given: What Do Directors Need to Do Now to Respond to Cyber Risk? 263
Lloyd Komori, BA Dip IT, CDir, ACC, HRCC
16 Cyber Risk from an IT Leader’s Point of View 285
Michael Castro, CDir, ASC, MBA
17 Cyber Legislation, Standards, and Practices: An Overview for Directors 295
S. David Craig, PEng, MBA, CRISC, ICDD
IV Environment, Social, and Governance 315
18 Environmental, Social, and Governance Issues and the Board 317
Cynthia E. Clark, BA, MA, PhD
19 ESG’S Growing Pains 335
Nell Minow, BA, JD
20 Shareholders, Stakeholders, and Tangible and Intangible Capitals 365
James E. Nevels, AB, MBA, JD, LLM
21 Responsible Boards for a Sustainable Future: Not ESG but G(ees) 383
Yilmaz Argüden, BS, PhD Gizem Argüden Oskay, BSc
22 Board Oversight and Climate Change: What Directors Need to Know 425
Patricia A. Koval, BA, JD, MBA
23 Business Reconciliation: Calls to Action #92 Board and Business Imperative 467
Gary L. Evans, Dip CS, BA, Hons BComm, MBA, PhD Corinne Chappell, MEd, MEd, EdD David D. Varis, BA, MA
24 CEO Political Activism: Corporate Governance and Ethical Dimensions 489
John M. Holcomb, BA, MA, JD
25 Business and the Social Agenda: C- suite Activism, Corporate Responsibility, Workplace Trust, and the Board’s Role 505
Sally J. Curley, BA, MBA, IRC Carol Nolan Drake, BA, JD
26 A CPA’s Primer on EDI: What Directors Should Know About Equity, Diversity, and Inclusion Audits 525
Romi-Lee Sevel, MFAC, CPA, CA
27 Making Diversity Work 535
John Zinkin, BA, MSc Chris Bennett, MBA
28 An Introduction to Regenerative Governance 559
J. Lyn Mcdonell BA, MA, FCMC, CDir
V Financial Governance 589
29 Financial Literacy and Audit Committees: A Primer for Directors and Audit Committee Members 591
Jason Masters, BEc, FAICD, PFIIA
30 What Every Director Needs to Know About Insolvency 617
Virginia Torrie, JD, LLM, PhD
31 Ten Telltale Signs of Possible Fraud: A Director’s Primer 633
James Hunter, FCPA, FCA
32 Scary Financial Reporting Issues for Directors 643
Dr. L.S. (AL) Rosen, FCA, FCMA, FCPA, CFE, CIP
VI Emergency and Crisis Governance 657
33 Considerations for Emergency Board Succession Planning Under the Worst-case Scenario 659
Jack L. Rozdilsky, PhD
34 COVID-19 and Beyond: The Persistence of Intersectionality in Management: Reflections for Management in a Post-pandemic World 681
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 715
Eric B. Kennedy, BKI, MSc, PhD
36 Disaster Management and Risk Assessment 727
David Etkin BSc, BEd, MSc
VII Risk Governance 735
37 Risk Oversight for Directors: A Practical Guide 737
Stephen J. Mallory ICDD, FCIP, CRM, BA
38 Risk Governance: Leading Practice and Demographic Impacts 759
Ingrid Robinson MFAc, BComm, CPA, CIA, CRMA
39 Board Risk and Responsibility Under Regulatory and Criminal Law 781
Norm Keith, B.A., J.D., LL.M., CRSP
VIII Human Capital and Compensation Governance 801
40 Winter Is Closer: The Approaching ESG and Human Capital Management Reporting Storm 803
Solange Charas, BA, MBA, PhD William L. Prickett, BA, JD
41 Measuring and Assessing Employee Value Added: Board Oversight of Human Capital 835
Stephen F. O’Byrne, BA, MS, JD
42 Missing in Action No Longer: Why Human Resources Is Integral to the Corporate Boardroom Agenda 849
Jay A. Conger, BA, MBA, DBA Edward E. Lawler III, BA, PhD
43 Questions Boards Should Discuss Before Adding or Modifying ESG Goals in Executive Incentives 863
Patrice Gélinas, ASA, CFA, BSc, MBA, PhD
44 Measuring and Improving Pay for Performance: Board Oversight of Executive Pay 873
Stephen F. O’Byrne, BA, MS, JD
45 Lawyers’ Advice to Directors on Overseeing Executive Pay 901
Howard Levitt, BA, JD Alyson Lee, BSc, MSc, JD
46 The Effective Compensation Committee 917
Steven E. Hall, BA, MBA
IX Legal, Ethical, and Conduct Governance 945
47 Model Individual Director Position Description 947
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
48 Fifty Question Areas When Conducting a Governance Audit or Investigation 953
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
49 Model Director Code of Conduct and Conflict of Interest Policy 983
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
50 A Board’s Responsibility for Enterprise Risk and Cultural Oversight: A Closer Look at Chiberl Health 997
Sally J. Curley, BA, MBA, IRC CEO, Curley Global IR, Llc (cgir) Carol Nolan Drake, BA, JD
X Board Leadership 1011
51 The Changing Nature of the Board Chair’s Role 1013
Parmi Natesan, BCom, BCom Hons, CA(SA), CD(SA) Prieur Du Plessis, BSc, BHons, MBA, IDP, CD(SA), DBA
52 Model Chair of the Board Position Description 1025
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
53 Model Committee Chair Position Description 1033
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
54 Model Board of Directors’ Guidelines 1039
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
55 Mission-critical Checklists for Directors 1049
Michael Useem, BS, MA, PhD
56 Model Guidelines for In-camera and Closed Sessions of the Board of Directors and Committees of the Board 1059
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
57 Model Board of Directors Virtual and Hybrid Meeting and Work from Home Policy 1067
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
58 Asking Good Questions as a Director 1079
J. Lyn Mcdonell, BA, MA, FCMC, CDir
XI Board Structure, Composition, and Effectiveness 1099
59 Re- empowering the Control Function of Boards 1101
Marie- Soleil Tremblay, BAA, MBA, PhD, FCPA, FCA Bertrand Malsch, MBA, MSc, LLB, BCL, PhD
60 Administering a Director Competency and Attribute Matrix 1113
Richard W. Leblanc, FCMC, CMC- AF, BSc, MBA, LLB, JD, LLM, PhD
61 Wisdom and the Board: Seeking and Developing Wise Leadership 1123
Chris Anstead, BA, MA, PhD, CDir
62 Model Director Orientation Policy 1141
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
63 Model Director Education Policy 1149
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
64 Understanding Groupthink to Manage Teamwork Effectively Within Boards of Directors 1155
Sylvie St- Onge, BAA, MSc, PhD, ASC, CRHA Distinction Fellow
65 Groupthink and Its Impact on Board Work 1177
Sue Owen, HBSc, MHSc, CHE
66 The Seasons of a Director’s Effectiveness 1187
Jill Brown, BA, PhD, Ann Mooney Murphy, BS, MBA, PhD Andrew Ward, BSc, MBA, PhD
XII Not-for-profit, Private, and State-owned Enterprise Governance 1213
67 A Primer on Charitable and Not-for-profit Organization Governance 1215
Donald J. Bourgeois, BA (Hons), LLB
68 Some Observations on the Governance Challenges of Boards of Directors of Small Not- for- profit Organizations 1233
Suzie O’Bomsawin, MBA, ASC Stéphane Rousseau, LLM, SJD, AdE
69 The Best of Boards, The Worst of Boards: The Not-for-profit Experience 1247
Adam Quinton, BA, MA, MBA
70 Model Fundraising Practices for Not- for- profit Boards of Directors 1267
Stephanie Cory, CAP®, CFRE, CFRE, BS, MS, MEd
71 Advice for Current and Prospective Directors of Start- ups and Early- stage Companies 1283
Steve Chan, BA, MA, MBA Adam T. Humann, BA, JD
72 Data Protection and the Cost of Compliance: The Reality of Small and Medium- sized Enterprises 1291
Talles Vianna Brugni, BSc, BBA, MBA, MSc, PhD Flávia De Oliveira Rapozo, MSc
73 The ABCs (Agencies, Boards, and Committees) of Government 1299
David Tsubouchi, BA, JD, LLD, DSLitt, CDir
XIII International Corporate Governance 1315
74 External and Internal Corporate Governance Mechanisms in Emerging Markets 1317
Natalie Tershakowec, BCom, JD
75 Making the Most of Board Evaluations: An Overview of Board Evaluation Practices in the U.S. and Globally 1331
Anthony Goodman, MA Sarah E. Oliva, BA, MBA
76 Evaluations That Enhance Board Effectiveness 1345
Richard Fields, BA, JD
77 Cross- border Corporate Governance 1365
Hari Panday, FCGA, FCPA, ICD.D, NACD.DC
78 ESG Disclosure by Privately Held Companies: Learning from a Case Study of a Brazilian Joint Venture 1395
Talles Vianna Brugni, BSc, BBA, MBA, MSc, PhD Christiane Carvalho Veloso, mm
Vania Maria Da Costa Borgerth, MSc, MBA, PhD Juliana Costa Ribeiro Prates, BSc, MSc Valcemiro Nossa, PhD
79 The Russian Corporate Governance Story 1411
Alexander A. Filatov PhD
Conclusion 1433
Richard W. Leblanc, FCMC, CMC-AF, BSc, MBA, LLB, JD, LLM, PhD
Index 1435
