"Recently, a group of prominent and influential business leaders issued what could turn out to be an historic declaration of independence for corporate boards. … the thirteen-point manifesto should be greeted with cheers. It’s a quiet, sober and carefully worded proclamation calling for the private sector to wean itself from pressures to achieve short-term shareholder value in favor of long-term growth."
“We are pleased to see that the principles supported by this esteemed group promote the same concepts of transparency, long-term value creation, and independent board leadership that NACD champions. ... Our robust portfolio of governance resources—developed for directors, by directors—can assist boards in implementing these practices.”
"In many respects, the 'Commonsense Principles' is one of the most substantive statements of corporate governance principles since the 2012 release by The Business Roundtable association, of its 'Principles of Corporate Governance.'"
"Investors should be very pleased to see that the principles include a call for the use of non-GAAP measures to be sensible and for them not to be used to obscure GAAP results, Borrus says. 'The use of non-GAAP numbers has been growing and it’s been a concern, and this suggests this will support the message the SEC is now trying to drive home to companies to clean up their financial reporting,’ she says."
[The goal] “is to drive best governance practices through companies of all sizes, not just the biggest—where they are more common today... [Gaining support from leaders of large businesses] 'brings additional weight behind these ideas.'"
“That such an elite group has backed a broad governance framework makes clear that corporate governance has entered the mainstream and should be a focus for all public companies. ... The publication of these principles is a call to action for U.S. companies large and small to adopt effective corporate governance standards and practices.”
"I think it shifts the burden of proof onto any corporation that doesn't comply," noting she was "delighted the signatories are such influential people. … Overall, I think this is great. They’re a little late to the party, but I like that they’ve arrived."