Periodic musings
The bankruptcies of four biotech companies are a tragedy of governance as much as finance. They remind us that in the venture ecosystem, the stability of a startup is only as strong as the weakest link in the chain of capital. For the next generation of founders, "knowing your investor" must include knowing who is investing in them.
Read MoreThis week reinforces that boards are being evaluated less on intent and more on demonstrable governance discipline - independence, documented process, and evidence that the board is actively engaged.
Read MoreAcross multiple stories this week, the consistent message is that outcomes no longer protect boards or management — process does.
Courts (e.g., Tesla) are scrutinizing how decisions were made
Regulators (cyber, controls) are assessing board response, not awareness
Investors are focusing on governance discipline, not narratives
If you cannot show independent challenge, documented rationale, and clear ownership, governance will be judged as insufficient — regardless of performance.
Read MoreIn boardrooms from Washington to Brussels to Tokyo, the governance story this week is about tension and convergence.
Tension: The EU is scaling back the reach of its sustainability and due diligence rules, while the US is turning up the political heat on proxy advisors over ESG and DEI. At first glance, it looks like a retreat from “peak ESG.”
Convergence: At the same time, cyber and AI are becoming explicit board-level responsibilities; African and South African codes are hard-wiring sustainability into governance; and investors are more vocal than ever on executive pay and board accountability.
Read More
