And in 2010, the United States joined German and Russian authorities in investigating whether HP executives paid millions of dollars in bribes to Russian officials to win a contract in Russia. What is your company’s vision? Environmental, social and governmental risk: HP has been plagued by board dysfunction for much of the last decade, marked by a "long string of questionable strategic and personnel decisions" according to GMI. He has completed 12 full distance Ironman Triathlons including the Hawaii Ironman World Championship 5 times. Stumpf's annual incentive award is not capped, has no pre-determined target and includes qualitative performance objectives. Much of GMI's concern about L-3 Communications, a defense contractor, is related to executive compensation. . According to GMI, all these companies present a "high level of concern" for both their short and long-term prospects thanks to a variety of risky management issues -- ranging from exorbitant executive compensation to lack of board independence. The CEO is also entitled to more than $24 million if terminated following a change in control. But what we forget is that the creator of culture is the CEO, not HR or anyone else. Three of the biggest areas in question were the unclear relationship between compensation and performance, a short-term policy orientation and concerns about internal pay equity. When was the last time you fired someone who has been with you so long you know their family? With PPL Corporation, GMI again singles out executive compensation as a big red flag. To avoid this mistake, learn how to provide regular feedback to your team. The leadership over an organization sets the tone of the corporate culture, company expectations and a vision for the company. Sign up for Innovation Inc. By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider In addition to questionable accounting concerns, GMI cited an aggressive assumption for the company's expected return on pension assets. Sure, you’ll have disagreements but as the leader, you have to make sure that when the decision is made, your team is behind it and they move forward in unity to make it happen. GMI also worried about executive compensation at Transocean. Compensation arrangements of key executives at Constellation Brands may not be in the best interest of non-family shareholders, according to GMI. Hewlett Packard CEO Meg Whitman Mark has won Ernst & Young’s Entrepreneur of the Year award and the Blue Chip Enterprise award for overcoming adversity. Expense and Revenue recognition issues, high inventory ratios relative to peers, high accounts receivable and sales numbers are some of the indicators that suggest questionable accounting practices, according to GMI. GMI also noted that the independence of Lead Director Phillip Quigley may be compromised by his long service (17 years) and the employment of his son, Scott Quigley, who is an institutional relationship manager in the company’s Wholesale Banking group. His firm coaches over 100 of the world’s top high-growth entrepreneurs and CEO’s on how to dramatically grow their revenues and profits, implement the most effective strategies, becoming better leaders, grow their people, build accountability systems, and elevate their own performance. Last fall, the U.S. government cited Transocean, PB plc, and Halliburton Company for violating oil industry regulations. Second, they fail to keep score on what matters. The fact that you have accepted a leadership role is a change all to itself, but everyday is filled with possibilities for change. What do you think is the biggest problem with leadership today? Effective communication is so hard b… By putting a structured communication system in place that connects at the right level with all of your stakeholders, you can dramatically improve your effectiveness as a leader and drive faster top and bottom line growth. Lower levels of administrative and operating expenses suggest questionable accounting, according to the analysis. Leadership is a skill you can learn. His firm coaches over 100 of the world’s top high-growth entrepreneurs and CEO’s on how to dramatically grow their revenues and profits, implement the most effective strategies, becoming better leaders, grow their people, build accountability systems, and elevate their own performance. There's also a securities class action complaint against the company and the CEO regarding violations of securities laws in connection with the providing of false and misleading statements. These leaders let their actions (and bottom lines) speak … Can they describe what the vision means to them and how the work they do supports the vision and brings meaning to their work? His last company ranked #1 Fastest-Growing Company in Los Angeles as well as #10 on the Inc. 500 of fastest growing private companies in the U.S. The complexity of today’s business world requires CEOs to be able to communicate on multiple levels. And the CEO is entitled to over $24 million in the event of a termination following a change in control. We coach the world’s top entrepreneurs and CEOs to increase profitability and accelerate growth in addition to delivering top rated speaking engagements. To 1,400 executives polled by the Ken Blanchard companies, failing to provide feedback is the biggest with. 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