More Than Chatting With Friends
The Expansion article, “More Than Chatting With Friends," quoted Russell Reynolds Associates Consultant Justus O'Brien about the move towards adopting US and EU best practices for public corporations. An excerpt of the article is translated from the original Spanish below.
Meetings that serve merely to review information and spend time together, that neither provide any value nor help to specify strategies that benefit the company: This is what three out of every ten board meetings in Mexico are like, according to a survey of 30 large companies conducted in 2016 by business consultants Russell Reynolds Associates and the Autonomous Technological Institute of Mexico (ITAM).
Those who persist with this do so as a result of the absence of any long-term vision, because independent board members are considered to be ‘outsiders’, and because the directors are not very open to change and ignore best practices in corporate government. Justus O’Brien, managing director of the consultants’ New York office, states that Mexico must move towards adopting the best practices of public corporations in the United States and the European Union. In the country to its north, pension funds pressure companies to adopt governance bodies. They are strict about asking for indicators, they use third parties when assessing the performance of their board members, they ask the CEO not to serve as chairman of the board, and they request that the company mitigate environmental impact and that it ensure succession planning for key positions. In Europe, investors advocate the participation of women on executive boards and determine the remuneration paid to directors.
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