Staying Focused

Abstract

There has been a dramatic increase in the focus on corporate governance reform. This has emboldened corporate shareholders and placed board members and senior management at personal risk for corporate performance. This article discusses the impact of legislation and governance guidelines on the ability of organizations to recruit, select, and ensure that their boards of directors and senior managers are adequately equipped to handle their increasingly challenging responsibilities. Organizations, including those in a turnaround situation, must respond to the new demands of the regulatory environment while still remaining focused on firm performance. What sets effective organizations apart from the rest of the pack is the implementation of effective recruitment, development, retention, and reward systems for senior leaders in addition to focusing on regulatory compliance.