Friday, April 22, 2005

Lessons for Not-for-Profit Boards

: "Lessons for Not-for-Profit Boards
by Randy Myers

Directors of not-for-profit boards are facing many of the same governance challenges as those on public-company boards. The hapless poster boy for this: Kenneth Langone, a former director of the not-for-profit New York Stock Exchange and head of its compensation committee. He�s being sued by New York state attorney general Eliot Spitzer, who claims Langone misled the rest of the board about just how much Richard Grasso, the NYSE�s former chairman and CEO, was being paid. Grasso is a co-defendant in the suit, which is not expected to go to trial until 2006 at the earliest. Langone, the chairman, president, and CEO of NYSE member firm Invemed Associates LLC, still serves on the boards of four public companies, but he announced in February that he would not stand for reelection to a fifth board, General Electric�s, this year. "

No comments: