SVDX — SVDX

Founder-led Companies and Board Governance: Data on the Board of Director Perspective

Of the 33 IPOs in Silicon Valley in the past year, 31 had a founder in the role of CEO/Chair. Fully one-third of the 150 largest public companies in Northern California are now led by Founder/CEOs.

Founder-led companies benefit from their leader’s entrepreneurial spirit and clarity of vision. Founders have passion, focus, creativity and drive. But do they have the experience and the business skills to lead their companies after the IPO? Will investor interests be protected in companies where Founder/CEOs have voting control?

Stefan ZierOctober 3, 2021CEOs, Board Governance

The SEC's Evaluation of Robinhood and the Concept of Suitability

Dopamine-Driven Trading On Robinhood Raises Suitability Concerns For The SEC

Hersh Shefrin, the Mario L. Belotti Professor of Finance at the Leavey School of Business, Santa Clara University, recently wrote an article about the SEC’s attention on Robinhood’s practices and the concept of suitability in using the Robinhood platform. See the full article here.

Stefan ZierSeptember 24, 2021SPACs

Everyone’s a Reasonable Government Target: The New Antitrust Reality for Boards

SVDX recently hosted a small group session around antitrust issues for boards, discussing new methods to cope with these changes and, in some cases, point the way to competitively advantageous strategies that can give the nimble corporation a headstart in dealing with an era of more aggressive government scrutiny.

Stefan ZierSeptember 2, 2021WSGR, Antitrust

The Pivotal Role of Investors in Worker Financial Security: Expanding ESG Analysis to Include Financial Well-Being

Commonwealth recently released a paper on The Pivotal Role of Investors in Worker Financial Security: Expanding ESG Analysis to Include Financial Well-Being. The report was coauthored with Katherine Collins and Stephanie Dobson of the Sustainable Investing Team at Putnam Investments.

Stefan ZierJune 28, 2021ESG

Human Capital Management Disclosure

Talent recruitment and retention is nothing new for successful competitive enterprises. However, “human capital management” has evolved from a strategic and compliance issue into a topic for public disclosure. SVDX recently held a small group Xchange session on Human Capital Management disclosure to further explore trends and future plans. Mike Esser and Deborah Lifshey (both Managing Directors at Pearl Meyer) provided additional information around disclosure requirements and what boards of directors should consider.

Stefan ZierJune 23, 2021Human Capital Management, Pearl Meyer

Intellectual Property as an Asset

Silicon Valley companies are all-too-familiar with the importance of intellectual property as an asset. However, most directors are unaware of the substantial advances achieved in recent years by third parties in the methodologies used for assigning value to IP that goes beyond the traditional patent portfolio. A recent SVDX small group Xchange Session discussed the issue of IP valuation and why trade secrets have become more popular. Lewis Lee (CEO at Aon Intellectual Property Solutions) gave additional information around new developments in IP measurement, trade secrets, and IP-backed lending.

Stefan ZierJune 23, 2021Aon, IP

2021 Trends and Developments in Executive Compensation

Meridian Compensation Partners recently completed a survey on 2021 trends and developments in executive compensation. The survey provides on overview of the current environment and signals the direction in which companies are moving with respect to executive compensation pay practices. The results summary tracks short-term incentives, long-term incentives, and ESG (environmental, social and governance) performance measures.

Stefan ZierMay 3, 2021Meridian, Compensation, ESG

Lonergan SV150: Top Public Tech Companies in Silicon Valley

The Lonergan SV150 is the definitive list of the top public companies in technology located in the Silicon Valley.

Download the 2021 rankings, and read analysis and insights on the Lonergan website.

Stefan ZierApril 27, 2021

Governance Excellence: Seven Key Areas

Stefan ZierApril 14, 2021Nasdaq, Corporate Governance

RE-POST: The Pandemic Is a Catalyst for Better Board Discussions About Cybersecurity

A recent article posted on NACDonline.org, written by Ray Rothrock (executive chair of RedSeal and board member of the NACD Northern California Chapter) and Mike Lloyd (epidemiologist-turned-chief technology officer of RedSeal) discusses the global pandemic being a catalyst for board discussions about managing cyber risk.

CybersecurityStefan ZierFebruary 26, 2021NACD Northern California, Cybersecurity

Eating What We Cook – What CEOs Need from their Boards: Webinar Summary

Silicon Valley Directors’ Exchange was pleased to host a webinar in late January 2021, “Eating What We Cook -- What CEOs Need from their Boards” featuring current and former CEOs who also serve as board members - Joe Burton, Moshe Gavrielov, Penny Herscher, and Michael Hurlston, along with moderator Mark Lonergan. The panel examined what the best boards can do to improve the companies they serve, especially as it relates to relationships with the CEO. This blog post is a summary of the discussion.

Stefan ZierJanuary 22, 2021CEOs

Is the End Near for VCs? Webinar Summary

SVDX, Venture CapitalStefan ZierNovember 24, 2020VCs

Corporate America and the U.S. Savings Crisis

Finance, SVDXStefan ZierNovember 18, 2020

SPACs AND LITIGATION

Why More SPACs Could Lead to More Litigation (and How to Prepare)

Market turmoil due to COVID-19 has halted many IPO plans, but IPOs by SPACs (special acquisition companies) are actually picking up in pace. Indeed, according to my sources at the Nasdaq, 40% of proceeds raised in IPOs to date this year have been from SPACs. And, as night follows day, more SPAC IPOs will lead to more SPAC litigation.

https://woodruffsawyer.com/do-notebook/more-spacs-more-litigation/

https://woodruffsawyer.com/wp-content/uploads/2020/01/Management-Liability_SPAC-Insurance-Guide-2020.pdf

Stefan ZierSeptember 11, 2020SPACs, Insurance, Litigation

WILL BOARDS HIRE NEWBIES?

Heidi Roizen encourages boards to consider adding “newbie” directors to their ranks to increase diversity.

I just had an exchange this morning that was sadly similar to too many exchanges I’ve had in the past.

Here’s how they tend to go.

The CEO and board members of a company are searching to fill an open seat. They reach out to me as a known connector and experienced board member, to see if I can add to their pipeline of candidates. Because I am a strong advocate of board diversity, I’m encouraged to hear they also want to prioritize diversity for this spot.

All good so far.

And then they say the thing that drives me crazy. When I ask for their top criteria for the search, they say,

“We’d prefer someone who has already been a director because we can’t afford the risk of on-the-job training for someone who’s never done this before.”

AAAARRRRRGH!!!!!!

Stefan ZierJuly 28, 2020Diversity, Leadership, Corporate Culture

CASE STUDY ON MODERN LEADERSHIP

Merline Saintil writes a case study highlighting modern board leadership.

On a beautiful summer evening in 2018 at Meadowood Napa Valley, I was seated next to Laurie Yoler for dinner as part of Diligent’s Directors’ Experience — a phenomenal 1.5-day event centered on connecting board members from around the world. The event program tackles many different board governance issues, but at its heart is the ability to connect with a diverse group of other directors to discuss how we can each make our respective boards and the organizations we support as effective as possible. Under a star-lit Napa sky and with the help of some unforgettable Napa wines, I got to know Laurie, her husband Ben, and hear more about her path as a female executive in technology to a public company board member. Also at the event was Heidi Roizen, an accomplished venture partner and board member whom I first met in 2013 when we both led workshops at the UC Berkeley Haas School of Business to support their Women in Leadership conference for MBA students. Over the years, Heidi graciously took my phone calls on career advice, so it was a delight to reconnect with her again and learn that she also knew Laurie through their board roles for the autonomous vehicle company Zoox.

SVDXStefan ZierJuly 22, 2020Corporate Culture, CEOs, Leadership, Diversity Comment