As a key role of the Board of Directors is to protect share holders, it got me wondering about how well RIM's Board has performed it's governance duties - and why there hasn't been more focus on RIM's Board.
Based on RIM's definition of the role of their Board from their website, here's my assessment:
Board Responsibilities
from RIM Company Site
|
Rating (1
low – 5 high)
|
Rationale
|
Ensure that a culture of
integrity is created throughout the organization
|
1
|
Not taking accountability for the Company's performance is a powerful signal.
|
Oversee and approve the
Corporation’s strategic initiatives and implementation of such initiatives
|
1
|
Key strategies have failed and
implementation (BBX, Playbook) has been chaotic and disappointing.
|
Assessing the principle business
risks of the organization.
|
1
|
The Company's product and infrastructure strategies are key risks the Board apparently missed.
|
Overseeing the Company’s
compliance activities, including the areas of legal/regulatory compliance…
|
3
|
The Company appears to
meet it’s basic legal/regulatory obligations however it’s approach to
disclosure (below) is questionable.
|
Monitoring the Co-Chief
Executives performance.
|
1
|
Tough to argue that the co-CEO's have performed well. Even worse, the co-CEO's are also the Co-Chairs of the Board, making it
impossible for the Board to fulfill this responsibility.
|
Adopting and monitoring a
disclosure policy for the organization.
|
1
|
RIM has consistently failed to announce the
departure of key senior execs, raising a question about what else the Board
has deemed not material.
|
Monitoring the integrity
of internal control and management information systems
|
?
|
Hopefully.
|
Developing the Corporation’s
approach to Corporate governance
|
1
|
What approach to Corporate
governance?
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