Taste of politics
Remember Ben & Jerry’s, the ice cream maker? We reported last month that its board is suing owners, Unilever, over attempts to sell the Israeli business to a local distributor. Independent board members say the distributor, American Quality Products, shouldn’t have it.
Now founders Ben Cohen and Jerry Greenfield have weighed in, alleging Unilever broke an acquisition clause giving the brand “independent” control over its “social mission”.
“Unilever has usurped their authority and reversed a decision that was made. And we can’t allow that to happen,” Cohen said in an MSNBC interview.
Once again, Board Agenda notes how tension emerges when ethics, politics and business combine. Corporate leaders are still learning to process this heady mix. The Manhattan District Court will decide how well they’re doing.
Net zero delivery plan
Investors are rallying round commitments to net zero, after appointments to the UK cabinet under new prime minister Liz Truss gave campaigners cause for concern.
Truss has ordered a review of ways to accelerate achieving net zero more quickly, but worries persist about the government’s commitment.
This week, investors from three organisations—PRI (Principles for Responsible Investment), IIGCC (The Institutional Investors Group on Climate Change) and UKSIF (UK Sustainable Investment and Finance Association)—sent a joint letter calling on Truss to stick to net zero and give investors clarity on what it intends to do.
“We therefore call on the government to set out a clear delivery plan for the transition of the real economy and financial services, with credible sectoral roadmaps underpinned by the near-term policies, actions and milestones needed to shift financial flows towards net zero.”
A bit of clarity would be nice, wouldn’t it.
“Pleasing” transparency
Country-by-country tax reporting is up a for a shareholder vote at Cisco’s AGM, but the board has advised stockholders to vote against it, writes the Financial Times.
That said, Cisco has accepted the need for a vote, unlike Amazon, which had to be told by regulators to let such a vote go ahead.
As for Cisco, shareholders tell the FT that the company’s decision to go ahead is “pleasing”, though it does seem they are concerned about what they might find.
Transparency is the trend; no reason why tax shouldn’t be part of that.
CEOs “ready to move”
US chief executive turnover is picking up now that the Covid crisis seems to be largely out of the way.
Researchers find that the rate for 2022 will be 11.6%, around 20% higher than in 2021.
“First, many CEOs are ready to move on,” write Matteo Tonello and Jason Schloetzer. The stress of the pandemic has taken its toll. But: “Second, boards of directors may be more prepared for change too. In the last two years, they have had the time to stress-test and strengthen their company’s succession plan, gaining more confidence in their ability to execute it.”
Hmm. The crisis is out of the way so boards are more willing to give CEOs they don’t like the shove? We don’t know. But if you’re a budding US CEO, this may be your time.