The Handbook of Board Governance: A Comprehensive Guide for Public, Private, and Not-for-Profit Board Members

1474 Pages·2020·12.645 MB·English

by  Richard Leblanc (editor)

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Praise for The Handbook of Board
Governance, Second Edition
“RichardLeblanc’sremarkableincursionintotheinnersanctumhasproducedcompellingevi-
denceofwhatexperiencedcompanydirectorsknow:it’snotthestructureofboardsthatdrives
performance; it’s the people and behaviors. This work continues with The Handbook of Board
Governanceanditsimportantemphasisondirectorcompetency,behavior,anddynamics.Isthis
thebeginningoftheendfor‘trophyboards’?”
—PatriciaCross,FAICDLife
Chair|CommonwealthSuperannuationCorporation;Non-ExecutiveDirector|Avivaplc;
SeniorIndependentDirector|AvivaInvestorsHoldingsLimited;FoundingChair|30%Club
Australia;andAmbassador|AustralianIndigenousEducationFoundation
“Dr.LeblanchasimpartedwisdomofthefirsteditionofTheGovernanceHandbooktoourboard,
includingbestpracticesinallareasofgovernance.Copieswereprovidedtoallofourdirectors
andseniormanagement.We—andGreenShieldCanada—havebenefited.Thesecondedition
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isenthusiasticallywelcomed!”
—SherryPeister,R.PH,BSc.Phm,ICD.D
Chair,BoardofDirectors
GreenShieldCanada
“TheHandbookofBoardGovernanceisthedefinitiveworkforboarddirectorsandseniormanage-
ment.IhavehadtheprivilegeoflearningdirectlyfromDr.RichardLeblancandthisHandbook
isreflectiveofthegoldstandardthatisrequiredofcorporategovernance.Inaddition,Ibelieve
thattheHandbookhasdirectapplicationtoalllevelsofgovernmentconsideringthecountless
agencies,boards,andcommitteesthatareappointedbygovernmentandaresubjecttostronger
requirementsofaccountabilityandscrutinybythepublic.”
—DavidTsubouchi,FormerOntarioCabinetMinister,FormerRegistraroftheOntario
CollegeofTrades,FormerIntegrityCommissioner,BoardMemberOMERSPensionFund
“IwouldstronglyrecommendTheHandbookofBoardGovernancetoeveryhospitalboardmem-
ber. It is an invaluable compendium of timely essays on every aspect of board governance. It
isespeciallyusefulfor“justintime”learningonspecifictopicsforanewboardmember.The
second edition recognizes the evolving nature of board governance by including new topics
suchascyber-crimeandclimatechange.Iespeciallyenjoyedthechapterentitled“EverySeat
Matters,”whichoffersanewandcompellingframeworktoassesspotentialandexistingdirector
contribution.”
—JamesMcCracken,PastBoardChair,OntarioHospitalAssociation,PastBoardChair,
TheOttawaHospital
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“IhaveworkedwithandconsultedRichardLeblanconanumberofoccasions.Hehasgover-
nanceknowledgeathisfingertips.Heregularlyadvisesboardsofalltypes,andgivesindepen-
dent, informed advice at all times. He is about high standards and at the same time realistic
judgmentandadvicebasedonpreparationandopendiscussion.Itisapleasuretogettoknow
this remarkable academic and advisor. I highly recommend both editions of his governance
handbooks.Theyaretimely,relevant,andcontainacompletecompendiumofleadinggover-
nancepractices.Bothshouldbeonanylawyer’sordirector’sdeskandwithinarm’sreach.”
—RobertW.McDowell,Partner,FaskenMartineauDuMoulinLLP
“The Directors College, the Gold Standard in Governance Education, enthusiastically wel-
comesthesecondeditionofTheHandbookofBoardGovernancetotheinternationalmarketplace.
Dozensofglobalexpertscover,in-depth,alltopicsofrelevancetopracticingdirectors.Under
the watchful eyes of Dr. Richard Leblanc, he has assembled a forward-looking who’s-who
galleryofauthorsandofbestgovernancepractices.Thisbookisamust-readresourceforany
directororadvisortoboards.Ihighlyrecommendit!”
—Dr.MichaelHartman,Principal,
TheDirectorsCollege
“IamdelightedtoprovideanenthusiasticendorsementforDr.Leblanc’sterrificbook.Ihave
beenusingthefirsteditionsinceitcameoutasagreatresourceforbothmyboardworkaswell
asmyconsultingengagements.Bothareoutstandingandleadingedge!”
—Andrew(Andy)Poprawa,CPA,CA,C.Dir.
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Advisor,Consultant&IndependentCorporateDirector
ChairoftheBoard,EducatorsFinancialGroup;ChairoftheGovernance&HRCommittee,
CanadianScholarshipTrustFoundation;Chair,AuditCommittee,MotusBank;andChairof
theBoard,CopernicusLodgeLTC
“The second edition of the Handbook of Board Governance should be read and kept as a ref-
erence by everyone involved in governance. Richard Leblanc has assembled papers by over
75internationalexperts.Thebookcoversmostofthetopicsaboardmembercanfacetoday.
Amusthave.”
—ClaudeLamoureux,FormerCEOofOntarioTeachers’PensionPlan
“I am pleased to endorse and welcome this much-needed second edition and the work of
Dr. Richard Leblanc. I am particularly pleased to see entire parts devoted to shareholder,
climate, and technology governance. All are vitally important, and arguably essential, to a
well-functioningcorporategovernancesystem.Thisbookmakesasignificantcontribution.”
—CatherineMcCall,ExecutiveDirector
CanadianCoalitionforGoodGovernance
“The climate crisis has become a mainstream business issue. It is creating winners and losers
andariskofenormousliabilities,withmuchmoreahead.Businessesthereforefacefar-reaching
anduncertainrisksandopportunitiesthatarewithouthistoricalprecedent.
Many corporate boards are ill-prepared for these risks, and for regulators’ and investors’
growing governance and disclosure expectations. How much must directors do to fulfil their
fiduciarydutiesofclimategovernanceanddisclosure?
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For directors of all companies, this comprehensive, well-written handbook is an excellent
place to start. It will help them to ask the right questions about climate change-related risks
andopportunities,andtomakeinformeddecisionsaboutbothriskmanagementanddisclosure.
Timespentstudyingthesechaptersisawiseinvestment;ignorethematyourperil.”
—Dr.DianneSaxe,SaxeFacts.comStrategicAdviceandPresentations,Climate,Energyand
Environment,2015–2019,EnvironmentalCommissionerofOntario
“ProfessorLeblanc’sHandbookofCorporateGovernanceisanindispensableguide.Itiscompre-
hensive,wellwritten,andaccessible.Itcoversthekeyaspectsofgovernancethatalldirectors
should be intimately familiar with in a practical, straightforward fashion. I am particularly
pleasedthatthesecondeditionaddressesnewanddifficultgovernancetopicsincludingclimate
changeanddigitization.”
—DianeMacDiarmid,ChiefTalentOfficer,QuadRealPropertyGroupDirector,Altus
Group,andFormerDirector,MorneauShepell
“Dr.Leblanc,alawyerandProfessorofGovernanceatCanada’ssecondlargestuniversity,isa
renowned,internationalexpertinhisfield.Heknowseverynuanceofeveryprotocol.Hewrites
clearly and always tells the truth. Some readers may find some of his views controversial but
theywouldbewisetothinktwiceassomeday,theymayregrettheyhadn’t.”
—Dr.GaryPolonsky,ICD.D,wasCEOto3boardsfor25yearsinpost-secondaryeducation
andaDirector(twiceasChair)tovariousboardsintheprivatesector,healthresearch,
andnationalmuseums
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“Thesustainabilityofcompanies,investments,andcommunitiesdependsheavilyondecisions
made by the men and women who accept the call to govern. How can they serve most effec-
tively? To my knowledge, there is only one person on the planet who has devoted an entire
careertostudyingthisimportantquestion:Dr.RichardLeBlanc,notedscholarandboardadvi-
sor.InthissecondeditionofhissuccessfulHandbook,joinedbyexpertsfromaroundtheglobe,
hesharesanswersonacomprehensiverangeofpracticalissuesconfrontingfiduciariestoday.”
—Dr.AlexandraReedLajoux,ChiefKnowledgeOfficerEmeritus,NationalAssociationof
CorporateDirectors
“WeaskedDr.LeblanctoprovidehisHandbooktoourDirectorsandLeadershipManagement
Team(LMT)ofTravisCreditUnion.WethenworkedwithDr.Leblanctoapplythelearnings
intheHandbooktoenhancethegovernanceandstrategicplanningofTravisCreditUnion.
Our Board has made great progress with our competency and attribute matrices, utilizing
Dr. Leblanc’s assessment tools and gap analysis. Our CEO and LMT developed Value
Drivers to further advance and execute the Strategic Plan. The enthusiasm is contagious and
Dr.Leblanc’sguidancewaskeytoouralignment.
Dr. Leblanc’s second edition is impressive in the midst of the digital environment when
“print”demandsexcellenceandrelevance!EveryboardchairandCEOshouldhavethistimely
resourcewithinreach,rightnow.Welldone!
—PatMoreno,ChairoftheBoard,TravisCreditUnion
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“Even20yearsago,anewcorporatedirectorcouldfeelcomfortableinhis/hernewrolehaving
readagoodlegaldescriptionofadirector’sresponsibilities.Thatandhis/herexperiencestood
themingoodstead.That’swoefullyinadequatetoday!
Business and commerce are changing so rapidly, and with these changes come numerous
challengesforboards,whoneedtoensurethesenewevolvingissuesarebeingtakenseriouslyby
management.ThecontentofthissecondeditionofTheGovernanceHandbook(comingonlyfour
yearsafterthefirstedition)validatestheneedfordirectorstostaycurrentwithnewemerging
issuesandtrendsinbusinessandgovernancethatmustbeunderstoodandrespected.
Climate, technology, risk and financial, strategic, human capital, and compensation gover-
nance,aswellaslegalgovernanceandresponsibilitiesareallupdatedforthereader.Anydirector
wishingtokeepcurrentwillbewellservedbyreadingthisbook.
Iexpectfutureeditionstoberequiredreadingeveryfewyears.”
—RobertE.Lamoureux,FCA,FCPA,ICD.D,ChairoftheBoard,ForestersFinancial
“The first and second edition of the Handbook are to be commended for their focus on risk
governance and internal audit, including the lines of defense, and independent, coordinated
assurancereportingtotheAuditCommittee.ThisisakeystrengthofthisHandbook,whichI
highlyrecommend!”
—M.E.(Peggy)Gilmour,CPA,CA,CRMA,ICD.D,BoardChair,InstituteofInternal
Auditors,TorontoChapter;FormerChiefAuditor,Metrolinx;andBoardMember,Ontario
PowerGeneration,andFormerBoardMemberandAuditCommitteeChair,
OntarioPensionBoard
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“I am pleased to provide an endorsement to the second edition of The Handbook of Board
Governance and, in particular, its forward-looking and futuristic nature. I have reviewed the
blockchainandothertechnologygovernancechaptersandtheyareexcellent.”
—DougMcLean,DeputySuperintendent,Insurance
BritishColumbiaFinancialInstitutionsCommission
“We have enjoyed working with Dr. Leblanc and benefiting from his wise counsel and the
comprehensive and up-to-date Handbook of Board Governance setting out the myriad complex
tasksthatgoodboardsareexpectedtoperform.Dr.Leblancistobecommendedforonceagain
pullingtogetherinoneplacetheviewsofthoughtleadersandpractitioners.Irecommendthe
secondeditionforanyDirector.”
—JeanMajor,ChiefExecutiveOfficerandRegistrar,
Alcohol&GamingCommissionofOntario
“Having worked with Dr. Leblanc, I am confident this second comprehensive handbook
will continue to provide practical guidance to all who share our commitment to effective
governance.”
—PaulG.Smith,ChairmanandChiefExecutiveOfficer,
FrontlineBroadbandInc.
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“The second edition of The Handbook of Board Governance is a must-read for any director
keepingabreastofconstantcorporategovernancechange.Itiswellwritten,current,relevant,
andcoverstheentirefieldofgovernanceinonecomprehensivevolume.Ihighlyrecommend!”
—NicoleMorin,CorporateSecretary,
MentalHealthCommissionofCanada
“AsProfessorLeblancfinalizesthesecondeditionoftheHandbook,Ihavecarefullyreviewedthe
materialandamveryimpressedwiththecurrencyoftopicsandthebreadthofopinionprovided.
I am also impressed with Dr. Leblanc’s standing commitment to promoting governance that
makesadifferenceandthatheiswillingtobedirectandchallengingtoachievethatend.Getting
thecultureinaboardroomrightiskeytogivingsubstancetobestpracticesthatmanyboards
haveinplace,butareoftengivenlipservicewhenmakingdecisions.Iamhappytoendorsethis
secondedition!”
—DavidScriven,SeniorStrategicAdvisor,
TechnicalStandards&SafetyAuthority
“IamproudtoendorsethissecondeditionoftheHandbookofBoardGovernancebyDr.Leblanc.
Richardhastrainedmanydirectorsonbestpractices.IhighlyrecommendthisHandbooktoany
not-for-profit,association,foundation,orhealth-careboarddirectors.Thecoverageandscope
ofauthorsmakesitamusthaveforanydirector!
—DinaPalozzi,FormerCEOandSuperintendent,FinancialServices,FinancialServices
CommissionofOntario;PastChair,CanadianAutomobileAssociationOntarioandMackenzie
(cid:2) Health;andDirector,HospiceVaughanandtheTorontoCentreforFinancialSectorSupervision (cid:2)
“TheHandbookofBoardGovernance,secondedition,isaninvaluableresourceforallcorporate
governanceprofessionals.Asthecorporategovernancefieldcontinuestoexperiencedramatic
change,thishandbookoffersreadersaninvaluablesetofbestpracticestoimplementwiththeir
ownboards.WehaveenormouslyenjoyedourgovernancejourneywithDr.Leblanc.”
—LesleyRoss,CorporateSecretary,
TarionWarrantyCorporation
“Dr.Leblancisaleaderinthegovernancefield.ThestrengthoftheHandbookistheattention
paid to risk governance, the lines of defense, and an independent and effective internal audit
function. I know from my work with Dr. Leblanc of his commitment to a strong internal
audit department as the foundation for overall governance. The two go hand in hand, and
this theme continues in the second edition. This Handbookis a must have for any risk officer,
headofinternalaudit,headofcompliance,orauditcommitteemember.”
—TonyStanco,CPA,CA,Manager,AuditandInvestigation
OntarioEnergyBoard
“Good governance is about proper accountability, leadership, reporting, assurance, and con-
tinuous improvement. We have benefited from Dr. Leblanc and the Handbook. Perhaps most
importantistheHandbook’sattentiontodetail,rigor,andcommitmenttobestgovernanceprac-
tices.Iwholeheartedlywelcomethesecondedition!”
—AnneMullen,CorporateSecretaryandChiefofStaff
Windsor-DetroitBridgeAuthority
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“IhighlyrecommendthesecondeditionofthisHandbookforanynot-for-profitorassociation
boardofdirectors.Wehaveimplementedthebestpracticesinthefirstedition,andhaveworked
withDr.Leblancoverthelastthreeyears,andourboardhasbenefitedandbecomemoreeffec-
tiveasaresult.Personally,Ihavegainedtremendousknowledgeonboardgovernance.”
—MackieI.Vadacchino,CEO,BioforceCanadaInc.,and
ViceChair,CanadianHealthFoodAssociation
“I am delighted to serve as an enthusiastic reference for Dr. Leblanc and his work. Mohawk
College has refined and improved its governance practices based on the board retreat that
Dr. Leblanc participated in and the recommendations that he helped develop with our
governors. Dr. Leblanc’s thinking and recommendations have guided our work efforts and
focus on continuous improvement in our governance practices. Our governance was already
good,butbyfollowingDr.Leblanc’ssuggestions,hehasmadeusmuchbetter.
CongratulationsontheupcomingsecondeditionofDr.Leblanc’sbook!”
—RonMcKerlie,President,MohawkCollege
“IhighlyrecommendthissecondeditionofTheHandbookofBoardGovernancetoanycorporate
secretary or governance professional who seeks to have an effective and highly functioning
board.Theextensivenessandwisdomimpartedisaninvaluablelearningandreferencetoolfor
bothboardmembersandseniorstaff,andprovidesreaderswithavitalsetofbestpracticesfor
considerationandimplementation.”
—LucyFoster,ExecutiveDirector,BoardGovernance
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MunicipalPropertyAssessmentCorporation
“I look forward to digging into the second edition of The Handbook of Board Governance. The
first edition was a tremendous resource. I am sure the next will further advance governance
thinking.”
—MichaelBassett,Director,ResearchImpactandContentStrategy,TheConference
BoardofCanada
“RichardLeblanc’scontributiontoListedwasbeyondthewordsandknowledgeofgovernance
issueshesharedwithourreaders,butalsothecredibility,credence,knowledge,andreputation
hebroughttoListedmagazine.Wishingyoueverysuccesswithyournewbook.”
—MartyTully,Publisher,Listedmagazine
“Dr.Leblanc’seagerlyawaitedsecondeditionestablishesnewgovernancestandardsandprac-
tices. It brings to the fore more knowledge and challenges boards and individual directors
need to examine themselves in a stricter light. Dr. Leblanc’s work is assisting us in reform-
ing the governance of not-for-profit sporting organizations—it is a new benchmark that will
lead us into a new era of governance. The relevant learning is well worth the price of this
book!”
—JackieBuckingham,ChiefExecutiveOfficer,CanadaArtisticSwimming
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“ProfessorLeblanctaughtmeusingthefirsteditionoftheHandbookwhenIattendedhissum-
mercorporategovernanceclassatHarvardUniversity.Wecoveredtheentirefieldofcorporate
governance.Ihighlyrecommendthesecondedition,includingitsfocusonwomendirectors,
genderdiversity,sustainability,andboardsinthenon-profitsector.
—ReneeYardley,BComm,MBA,A.L.M.,SeniorVicePresidentSalesandMarketingat
SustanaFiber,andDirector,Fondationdel’HôpitalgénéralduLakeshore/LakeshoreGeneral
HospitalFoundation
“A board of directors consists of a group of individuals having differing backgrounds, beliefs,
andexperiences.Thatdiversitybringschallengesandopportunities.Thissecondeditionofa
comprehensive handbook provides the framework to help board practitioners identify those
challenges and transform them into opportunities. Filled with topics that are necessary for
directorstofulfilltheirduties,andinsightsfrommanyoftoday’sthoughtleaders,Dr.Leblanc’s
collectionisamusthaveforanyoneworkinginthecorporategovernancearena.”
—JamesE.Nevels,DirectorofAlcoaCorporationand
LeadIndependentDirectorofWestRock
“This second edition of The Handbook of Board Governance contains thoughtful analysis on
criticalemergingissuessuchasclimatechange,technology,thedigitalworldandthecorpora-
tion’sroleinsociety.
Inaddition,theglobalperspectiveoffered,throughchaptersoncross-bordergovernance,as
well as insights into corporate governance in Asia-Pacific, China, Russia, and the Caribbean,
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roundoutthemostcomprehensivetextofitskind.
Professor Leblanc is to be commended for his forward-thinking leadership, assistance to
boards,andcommitmenttoadvancingbettergovernanceglobally.”
—Hon.A.AnneMcLellan,PCOCAOE
“The Handbook of Board Governance is not just for directors. It is for CEOs and addresses the
complex and vital Board-CEO and President-CEO relationships. The Handbookis applicable
toalltypesofboards,includingsportingandnationalboards.Dr.Leblanchastrainedonrisk,
composition,leadership,succession,compliance,andtoneatthetop.Ihighlyrecommendthe
secondeditiontomypeers.”
—KimVanBruggen,ChiefExecutiveOfficer,TriathlonCanada
“IwouldstronglyrecommendTheHandbookofBoardGovernancetoeverynonprofit,publicsec-
tor,andprivatesectorboardmember.Itiscomprehensive,timely,andonpoint.Dr.Leblanc’s
commitmenttoboarddiversityshinesthroughatatimewhenboardsarepayingmoreattention
totheissuegiventheincreasingdemandsofinstitutionalinvestorsandcreditratingagencies.I
alsofoundthecannabischaptertobeaninterestingreadgiventheimportanceofsoundgov-
ernancetothisnewindustry.”
—PamelaJeffery,Founder,Women’sExecutiveNetwork,Canada’sMostPowerfulWomen:
Top100Awards,andtheCanadianBoardDiversityCouncil;Chair,OntarioAdvisoryBoard,
Fire&Flower;andChair,HumanResourcesCommittee,StratfordFestivalBoardofGovernors
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