Many companies have adopted enlightened (at least in my view) governance practices, and shareholder engagement is increasingly becoming the norm—including engagement by board members. Additionally, many boards are taking steps to enhance their effectiveness, such as focusing on board skills and diversity as well as paying more attention to serious board and committee evaluations. At the same time, some companies are philistines; they resist adopting enlightened practices and seemingly refuse to take or even consider steps that would enhance board effectiveness. They seem to think that the way they’ve done business must continue to be the way they do business, and in my view, that is not advisable.
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