News

• Date: 01 January 2018
• Published date: 01 January 2018
• DOI: http://doi.org/10.1002/bl.30096

4 BOARD LEADERSHIP

NEWS

U.K. Corporate Governance

Proposed Overhaul

More than 250 entities have

responded to the proposed revamp

of the United Kingdom’s best prac-

tice rules for London Stock Exchange

companies, according to the Financial

Times (March 6, 2018).

The proposal, which would be the

first major overhaul of the 25-year-

old corporate governance code since

2014, would take effect during the

summer of 2018 and would instill sev-

eral major changes:

1. Board independence: The

proposal would introduce a nine-

year tenure limit for independent

chairs and directors.

2. Executive pay: Shares received

as part of an executive bonus

should be held for at least ve

years.

3. Financial reporting:

Corporations would need to

disclose how they arrived at

conclusions in their statements.

4. Diversity: Companies will be

asked to disclose what action

they have taken to increase

ethnic and social diversity in their

“executive pipeline”.

5. Contribution to society:

Companies should for the

rst time disclose how they

“contribute to wider society.

Nonprofit and Philanthropic

Leaders Call on Congress to

Preserve Johnson Amendment

Nonprofit and philanthropic leaders

are calling on Congress to preserve

the Johnson Amendment, the long-

standing legislation that prohibits

501(c)(3) nonprofit organizations

from endorsing or opposing political

candidates.

On February 7, 2018, nearly 150

national organizations sent a letter

to House and Senate appropriators

expressing their opposition to the

inclusion of anti–Johnson Amendment

language in spending bills that Con-

gress will soon be considering.

Leaders from across the charitable,

religious and philanthropic communi-

ties shared why they think this legisla-

tion must remain in place:

Anne Wallestad, president and

CEO of BoardSource: “At Board-

Source, we believe in the importance

of nonprofit engagement in discussions

about public policies that impact our

missions and the people and communi-

ties we serve. But we also understand

that electioneering is a completely dif-

ferent matter, and that allowing non-

profits to endorse and support specific

candidates is a dangerous and slippery

slope. That is why we strongly oppose

any effort to weaken or repeal the

Johnson Amendment.”

Vikki Spruill, president and CEO of

the Council on Foundations: “Chari-

table foundations serve to channel the

generosity of private citizens towards

the causes and issues that resonate

with their passions and experiences.

For them to continue to fulfill this

purpose, it is crucial that the public

trust they have earned over the years

is not diminished by partisan labels or

influence.”

Tim Delaney, president and CEO

of the National Council of Nonprof-

its: “The nonprofit community cannot

afford the division and lack of trust

that plague the partisan political

process. Leaving partisan labels at

the door allows nonprofit employ-

ees, board members and volunteers

to come together in service of that

nonprofit’s mission—something that

wouldn’t be possible if the long-stand-

ing Johnson Amendment is weakened

in any way.”

Lee Sherman, president and CEO

of the National Human Services

Assembly: “The Johnson Amendment

allows nonprofits to cultivate public

trust in the sector’s public services,

facilitate cross-sector collaboration

and offer bipartisan solutions that are

core to our missions and the develop-

ment of well-being in our communities.

Weakening the Johnson Amendment

will create pressure on nonprofits to

divert resources to political campaigns,

identify with a political party and

accept funding that is conditioned on

supporting or opposing specific candi-

dates. It is, therefore, important that

the protections against participation

in political campaign activities remain

intact, leaving organizations free to

focus on their missions.”

Jatrice Martel Gaiter, executive

vice president of external affairs for

Volunteers of America: “Nonprofit

human service providers are bracing

for large cuts to programs that help

the sick, the disabled, the underedu-

News

(continued from front page)

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