95. Why does every little new governance idea feel like a BIG DEAL?

SCRIPT Governance evolves slowly. I mean, some of you might say, for example, “Matt, come on, board diversity has improved SO MUCH in the past few years.” To which I’d reply, “first of all, in what universe does a YEARS LONG change in human capital count as fast, and second, diversity has been the number one most discussed governance topic for, like 20 years!” And you can choose a hundred other things that have moved even more slowly. This is why any time some tiny thing happens it can sometimes feel like a revolution. Comply or explain, say on pay, or even proxy access SEEM like they are huge deals for listed companies, but seriously can anyone argue that the governance landscape is even a little different as a result, outside a few unusual examples? Even shifts that I think are potentially more meaningful, like a shift toward stakeholder capitalism and an overall evolution in corporate approaches to equity, diversity & inclusion – I mean, they take up SO MUCH oxygen in conversations about governance, but we can all admit that the lives of most directors and executives are 99% identical to what they were five years ago. So what’s with the exaggerated reaction to small change? I think it’s just evidence of the remarkable gravity of the status quo. Honestly, it’s a problem. But what can we do about it? My best advice is PRACTICE. For a refresher, listen back to episode 70.