Based on extensive research, including director survey data: "Tone at the Top: The Board’s Impact on Long-term Value" from FCLTGlobal and Russell Reynolds suggests tangible ways in which the board can foster a long-term orientation, including action items that may be positively influenced by the corporate secretary such as board agendas, board materials, meeting documentation, messaging, and follow-up. The focus is on properly balancing short-term and long-term issues, with an emphasis on framing short-term issues in the context of the company's long-term performance.
The instructive publication includes a director "cheat sheet" with these (and other) sound action items:
Notably, the research shows how the views of long-term-oriented and short-term oriented directors differ as respects their motivations to serve on a board and their focus in the boardroom such that companies are encouraged to address potential short-termism in the candidate recruitment process. Along those lines, the paper identifies short-termer "red flags" and suggests how the Nom/Gov Committee can pick up on these indicators in the candidate diligence and vetting processes.
Access numerous additional FCLT and other resources on our Long-Termism/Short-Termism page. This post first appeared in the weekly Society Alert!