In Corporate Counsel Story, Kerry Berchem Discusses Akin Gump Report on 2021 Priorities for Directors
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As it has done in previous years (see here), Corporate Counsel spoke with Akin Gump corporate governance practice head Kerry Berchem on the release of the firm’s annual Top 10 Topics for Directors report.
The article, titled “Directors, GCs Need to Examine Board Diversity, ESG Issues in 2021, Says Akin Gump Report,” examines the various topics covered in the report with a particular focus on diversity at the board level.
Berchem notes that, in her client work, “This year, what we’re doing is a proactive, holistic approach to governance as we talk to our clients, their boards and general counsel.”
She said that issues, such as diversity and environment, social and governance (ESG), that would not have concerned boards during the Trump administration will become more relevant in the Biden administration.
Berchem also pointed to the impact of COVID-19, saying, “It just hasn’t impacted all of us equally. It has exacerbated divides and highlighted recognitions of income inequality, diversity in the workplace and diversity in a lot of different levels.”
On the topic of board diversity, Berchem spoke about the trend among U.S. states to enact board-diversity related measures as well as the proposed rule submitted by Nasdaq to the Securities and Exchange Commission requiring most Nasdaq-listed companies either to have at least two diverse directors or explain why they do not. Of this, Berchem said, “The Nasdaq proposal is unique in that it came from an exchange for the first time.”
Regarding corporate ESG efforts, however, she noted, “The answers are still somewhat elusive. In the U.S. there has been a lack of uniformity in terms of disclosure and what metrics to utilize.”
Berchem added that boards should focus on the “E” and “S” of ESG, explaining that millennials and activists are very interested in climate topics, which companies should not ignore, and, she said, “Activists and others are also interested in social justice. It is not a new issue but there has been an acceleration of awareness and a reminder for others.”
