Corporate crisis: the readiness is all; Does your board have the competencies to meet the most common dangers? A board assessment can prepare you for these potentially ruinous 'turning points.'.

Directors & Boards › Vol. 31 Nbr. 3, March 2007

Author: Jones, Dale E.

Position:: HEIDRICK & STRUGGLES GOVERNANCE LETTER

Linked as:

< Previous

Next >

Summary

HEIDRICK & STRUGGLES GOVERNANCE LETTER

See the full content of this document

Extract

Corporate crisis: the readiness is all; Does your board have the competencies to meet the most common dangers? A board assessment can prepare you for these potentially ruinous 'turning points.'.

COMPANY CRISES come in all shapes and sizes--defective products, hostile takeovers, executive misconduct, natural disasters that threaten operations, and many more. But from the point of view of directors, they all have one thing in common: They threaten the stock price and sometimes the continued existence of the company.

In 1993, an allegation of E. coli contamination in the beef served by the Jack in the Box hamburger chain caused the company's share price to plummet from $14 to about $3. A similar allegation against Taco Bell at the end of last year drove down the stock of...

See the full content of this document