Good corporate governance is fundamental to Cerium Technology and its investments. Governance and oversight of the business model and strategy of each of our portfolio companies is critical to the delivery of value to our stakeholders. This is more important than ever given the current challenging and uncertain economic environment and the changing regulatory landscape. Cerium is represented on the Board of Directors of many of our portfolio companies.
The Board is responsible to shareholders for the overall management and oversight of each company and for its long-term success. In particular, the Board is responsible for agreeing the company’s strategy, monitoring financial performance, setting and monitoring company metrics, and maintaining an effective system of internal controls.
It is the Board’s responsibility to ensure that each portfolio company has a clear strategy and that the necessary people, resources and structures are in place to support the delivery of this strategy. It is also the Board’s responsibility to ensure that there is an effective organizational structure in place such that there are clear reporting lines within the company and well defined roles and responsibilities. This is to ensure that the right decisions are being made with involvement from the right people.
Specifically, Cerium sees the role of each board to focus on four major responsibilities, each a significant factor in the growth and profitability of the company.
First, the Board must evaluate, develop and authorize business strategy. This includes definition of target customers, value proposition and competitive differentiation. The strategy will also include comprehensive planning of products and services.
Second, financial and operational metrics must be established by the Board to monitor the performance of the company. These metrics are to be monitored frequently and adjusted from time to time as business conditions change.
Third, the Board must ensure that each of members of senior management of the company has the character, skills and resources to deliver the strategy and that appropriate succession and contingency planning is in place. This includes all compensation ativan online.
Finally, it is essential that the Board maintain an appropriate internal control framework, and ensure that there are effective risk management policies and processes in place.
Matters delegated by the Board to senior management include implementation of the Board approved strategy, daily management and operation of the business, the appointment and remuneration of all staff reporting to senior management and implementation of risk management policies and processes.