Growing up, “The dog ate my homework.” was rarely a credible excuse. Now, while COVID-19 is an explanation for much that is happening, it is not a credible excuse for companies that failed to make progress on things they should have been working on throughout 2019 and into 2020. Board composition and recruitment is a year-round effort. Compensation program design to align pay with performance is not “add water and stir” but ongoing. CEO-succession planning doesn’t happen only in the first quarter. If this year’s disclosure looks just like last year’s disclosure, you can bet that investors will notice.
And if investors do, COVID-19 won’t be a credible excuse or an explanation. And blaming the dog or cat probably won’t work either. So, let’s hope companies and boards developed and followed good annual plans to address these and other long-range initiatives. And, those plans included crisis-preparedness review.
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