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Forecasting the Trump Governance “Windstorm”

What boards should focus on—and ignore—in an uncertain regulatory environment.


Directors & Boards | May 1, 2017


The Directors & Boards article, “Forecasting the Trump Governance 'Windstorm',” quoted Russell Reynolds Associates Consultant Constantine Alexandrakis about the current geopolitical climate and how it affects corporate America. The article is excerpted below.

Since President Trump took office, boards have been bracing for a weather change in corporate governance.

While many directors believe potential changes will be generally positive for Corporate America, the lack of certainty on what those changes will be is the biggest issue for board members. The first months of the administration, says one board member, have been “like a windstorm, and its direction is uncertain.”

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“This is absolutely a time to increase attention on board effectiveness, and thinking through board diversity as well,” advises Constantine Alexandrakis, head of U.S. business for Russell Reynolds Associates.

“If you have a board with directors who have largely been out of active management of a business for more than five years, that could be a recipe for disaster unless directors are able to keep current in other ways,” he explains. “Be a lot more systematic on how to think about board effectiveness, constantly refreshing the board to make sure the right minds and approaches are sitting around the table. The way boards have run over the last 20 years is not the way they need to run in this environment.”

Boards, he adds, have to have “an increasing ability to pivot.”

To read the full article, click here.

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Forecasting the Trump Governance “Windstorm”