Proactive Vetting Exposes Board Nominee’s Governance Gaps Ahead of Campaign

A company trying to stave off a possible activist campaign retained us to vet a prospective board nominee. 

From regulatory findings and open-source research, we pieced together that the nominee sat on another board that had recently disclosed material weaknesses in internal controls over financial reporting. The company had also recently dismissed a briefly-tenured CFO and twice parted ways with its accounting firm, all while this prospective nominee sat on that board’s audit committee. 

Our findings enabled the company to assess the nominee’s vulnerabilities before an activist would.