Ann C. Mulé

By Michael Volkov – Principal at The Volkov Law Group & John Fons – Former Director of Global Compliance & Ethics Programs Corporate boards face expanding risks and increasing responsibilities. No longer is board service a ‘comfortable resting place’ for former executives forced to retire from a company because of age restrictions. Board members are subject to increasing scrutiny by prosecutors, regulators, shareholders, creditors and other stakeholders.

Many companies are missing an audit committee disclosure opportunity. In the 15 years since the Sarbanes-Oxley Act of 2002 (SOX) was passed, large institutional investors have been “finding their voice” and sharing their views of board expectations with regard to composition, accountability and transparency.

The challenges and opportunities posed by business-model disruption, environmental, social, and governance issues (ESG), corporate culture, investor scrutiny, regulatory demands, cyber risk and more are reshaping the business and risk landscape and adding to already heavy board agendas. As demands on directors’ time increase, the board’s ability to prioritize and take deep dives into the substantive issues facing the business becomes more vital — and challenging.