Teneo News: Lisa Friedman Joins Teneo Strategy as Managing Director

The Evolution of Compliance Best Practices

Governance and compliance are not just for public companies. Scandals and breakdowns have highlighted the need to assess and enhance governance and compliance programs at organizations of all kinds. Effective governance and compliance programs are critical whether organizations are transforming their business model through restructuring, optimizing access to capital by adopting best-in-class practices, or fighting to survive a crisis sparked by internal shortfalls or external forces.

Teneo can evaluate the current state of a company’s programs, benchmark those programs against best practices, work with the board and executive management to determine and develop a unanimous view of the optimal future state, and work with the company to develop and maintain a resilient and sustainable framework.

The spotlight on boards continues to intensify with increasing demands and scrutiny from a variety of stakeholders – institutional investors, activists, the media, regulators and customers. The challenge of creating long-term shareholder value in the face of short-term pressures, combined with ongoing developments in corporate governance, has resulted in the effectiveness of the board as a high-functioning team taking on even greater importance.

A strategic board functions well as a team, adds value and communicates effectively. It is investor-savvy, recognized as a leader in best-in-class governance and includes a diversity of views and experience aligned to a company’s business strategy. Teneo’s talent and governance experts help to analyze and then, as required, develop a company’s board so it can function as an asset that supports a company’s strategic business imperatives and demonstrates its commitment to best practices, and engages in effective dialogue with shareholders.

The governance and compliance plan is an integral part of the overall business strategy for any organization and is a crucial component to meeting the evolving expectations of external stakeholders. For organizations facing persistent regulatory overhang, building a credible response is critical to reinforcing and enhancing the company’s license to operate.

Teneo can advise on every aspect of compliance planning, taking a company from evaluation and assessment of the current compliance environment, all the way through to plan development and continual monitoring and revisions. We will perform an initial evaluation and assessment to vet the current compliance functions and procedures already in place in order to determine where best practices can be implemented. We will then develop a bespoke action plan based on the outcome of our initial assessment. We will also continue to monitor companies on an on-going basis to ensure they are adhering to current compliance best practices, and will make plan adjustments as necessary to ensure the needs of the company are being met.

Shareholder demands have created the need for investor-savvy boards that understand the requests for shareholder engagement and dialogue. This, coupled with the need to establish and present a clear and concise plan for the business, is demonstrative of the fact that board demands have grown exponentially in the last decade and will continue to grow.

Teneo’s experts can help companies meet these increasingly sophisticated demands and keep pace with the shifting governance paradigm. Our team of advisors assess key aspects of a firm’s governance practices and executive compensation program and provide benchmarking analyses on best practice approaches from the viewpoint of investors and proxy advisors. We also advise how to develop and implement engagement strategies that ensure management and the board partake in effective dialogue with their investors, and demonstrate and communicate to key stakeholders the commitment of the board and executive management to global best practices.