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Directors must act on signals

Every recent case of corporate governance failure had developed through a trail of early signals

independent directors
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R Gopalakrishnan
How do you deal with a high performing CEO who is arrogant, in-your-face and cocky? Watch very carefully for prodromal signals and act on the 5Cs: Consider, consult, counsel, coach and, if all fail, then confront. 

Before any disaster, there are prodromal signals, which portend a development. For example, in Newark, USA, recently, the municipal water tested positive for lead. Despite this, the insensitive and defensive mayor wrote to reassure the public, followed by a condemnation of the "false statements". The federal government heavily intervened to reverse the mayor last week. Another example: In 2011, John Looker, suffering from brain cancer,
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First Published: Aug 30 2019 | 9:36 PM IST

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