NBR, 29 August 2008, Table Talk by Nicki Crauford

Its shareholder resolution at troubled technology giant Alcatel-Lucent, whose stock price has tumbled more than 60% since the 2006 $US11.4 billion merger, would ban all executive stock and option plans until the company has either turned a profit or declared dividends for two consecutive years.  "We feel it is important, in order to maintain shareholder confidence, that Alcatel-Lucent's board of directors offer stock option plans and issuing of free shares to management reflect a company's profits during the management's term," PhiTrust declared.  "This also implies that such compensation plans are null and void for management in the event the company produces net losses."  Alcatel-Lucent is in the middle of a restructuring that foresees 16,500 job cuts.  Both its chief executive and chairman have resigned since this statement was made.

Directors question chairman role
An invitation to all UK FTSE 350 board members to participate in a Cranfield School of Management survey of board performance revealed that executive directors seriously question the value of a board and its chairman.  While this is not exactly new there is a suggestion some UK chairmen may be edging too far toward the adoption of a corporate strategic role by aligning themselves with, and even superseding the chief executive, rather than focusing on their key governance responsibilities.  The quarter of shareholders in the high street giant and retail barometer Marks & Spencer that opposed Sir Stuart Rose's controversial promotion to executive chairman would probably agree.

Chairman, evaluate and heal thyself
The Cranfield report signals a need for chairmen to clarify and seek greater accountability for their own role as well as taking a more active role in leading the board to promote both coherence and performance.  The conclusion was that chairman and board development and succession planning are crucial issues that should not be ignored.

And while you're at it
Don't dismiss older workers as inflexible.  Research shows mature-aged workers are likely to stay longer in their jobs than younger workers.  Specialist recruiting company Hays found one in two mature-age workers remained in their last role for more than four years - compared with one in three of other age workers.  Older workers also increase a firm's retention rate and reduce recruitment costs.  But aren't they less receptive to new technology and therefore efficiency impaired?  Apparently not.  The research debunks some of the stereotypes about middle-age workers, such as being set in their ways, only wanting part-time work or are inept with technology.  The reverse is usually true - many mature-age workers want permanent fulltime work, are looking for job stability, pick up new technology quickly and are more than willing to try new ways of doing business.