Case Study - Corporate Goverance

Case Study #6

In the continuation of this unfolding story that we follow, the newest member of Mega Corporation, Jack Wright decides to follow thru with his plans for trying to work on the internal leadership of the Board of Directors and begins setting up the ground work for the overhaul of the company’s leadership team and bringing in New vision.

In the first section, we see the opportunity of the compensation committee that is presented to Wright and what he deems as inappropriate use of time and funds regarding the longevity of the companies ever declining performance. I believe that Wright is dead on with this point. Here we have members taking time, worrying about keeping the same leadership that is entrenched in the vision of the status quo and spending money that could reallocate until the company has turned around financially. But instead, the money is being awarded to under performing Rock, which has tried but simply cant shake being under the thumb of Sam Bigger in order to make the necessary changes in this company and the hard decisions that need to be made.

The next portion of the story is Wright having conversations with different members of the board about the leadership of the company and where they see it headed. Most if not all of the board members seem to be receptive to the idea of having a new CEO that will point them in the right direction. Finally Jack goes and speaks with John and asks him the impossible questions regarding himself, and his thoughts about being willing to step out of the way and allow for someone to replace him. John takes this remarkably well and merely admits that he has been unable to due to Sam. The final Conversation we see is that of Jack and Sally regarding her brother. Even though she feels that the company could use a change, she is loyal to her brother and will not ask him to leave. Jack now is faced with confronting Sam and begins to convince him to step out of the way. I believe that the way Jack went about this was the right way to handle this group of individuals. He needs to be supported and make sure that this is not just what he is feeling. He also, as the newest member of the board, it would be inappropriate for him to make such a drastic change without consulting members with more experience with this company and individuals. However, this overhaul is the exact reason that he was hired. That is the goal to improve and turn around Mega Corporation and work for the shareholders, which I believe he is in his full rights of doing.