Setting a proper tone at the top has not been easy for corporate boards since the Sarbanes-Oxley era began—and it’s only grown harder as the tone everywhere else has turned decidedly sour.
The difficult economy, uncertain political climate, and unhappy shareholders all pose additional challenges to boards struggling to fulfill their fiduciary duties. Many boards were on unsteady footing well before the recession arrived last year. Now, says William McCracken, chairman of CA and president of the Executive Consulting Group, “I don’t believe that boards know enough about the details of what’s going on inside companies.”
