Get Governance Right

Part four of Simon Freakley's Leadership on a tightrope series

Tesla and Elon Musk were once again in the news recently—this time around board governance and concerns around transparency and independence. While I am not privy to any non-public details, I am confident that no CEO wants to generate headlines around corporate governance. There is only downside.

Many CEOs see the board and its various processes as performative or, frankly, a waste of their time. The meetings can drag on. Information sharing might be more effective via other means. Some directors may not have the right levels of engagement and may value their board seats for the status they confer.

But getting governance right is essential for the health and sustainability of any organization. The best-functioning boards improve transparency, decision-making, and risk management, while attracting capital investment.