What is ahead for boards?

• Author: Dilenschneider, Robert L.
• Position: Donald Trump as President

Starting on January 20, 2017, the challenges for boards of directors will be unprecedented. On this day, of course, President-elect Donald Trump will become the 45th President of the United States.

Expect change in every aspect of life in America and much of it will affect public companies. This will not be a time for the weak of heart.

Boards will be faced with unforeseen choices for which many will be unprepared. This will go far beyond the selection of a CEO and financial decisions on business matters.

One key for boards over the next four years will be in helping management decode what is coming from the White House, and reacting in a way that advances the company's position.

Trump's party will be in control of both the House and the Senate, something that has not happened for more than a decade. That said, it takes 60 votes to move most legislation through the Senate and the Republicans will start with 52.

But look for Trump to use Executive Orders with abandon.

What should boards be thinking about?

* Expect significant statements on tax reform with a call to bring more than $2 trillion being held overseas to avoid taxes back into the United States.

* Look for an overhaul of the healthcare system.

* Any company shifting manufacturing outside the U.S. will come under the microscope.

* Trade will be very touchy. The Trans-Pacific Partnership is dead but NAFTA and tariffs on goods from places like China and Mexico will be discussed. Directors of companies like General Motors and Apple that manufacture overseas should be prepared to come under intense pressure, given Trump's "America First" position.

* If the dollar jumps, as is expected, count on pressure on American exports.

* Energy integration will be a major focus. Trump will favor active exploration and drilling for energy and environmentalists will react negatively to hydraulic fracturing, pipeline building and more.

* On the regulatory front, expect significant efforts at rollbacks.

* Look for a huge impact in the commercial property market.

* Expect pushback pressure from social activist shareholders for corporations to resist Trump-inspired environmental and regulatory changes they take exception to.

* And any company with operations outside the United States will need to keep...