New Study On CEO and Board Chair Roles
The debate over whether CEOs should also serve as board chairs is shifting, with a declining trend in unified roles. According to ISS-Corporate, only 43% of S&P 500 companies currently have a combined CEO and chair position, down from 56% in 2013. This aligns with a broader movement favoring more independent boards, driven by concerns about CEO hubris and a desire to protect investors. While research hasn’t definitively proven the benefits of separating these roles, a recent study suggests that during the first year of the COVID-19 pandemic, companies led by a CEO who also chaired the board outperformed their peers. The study argues that the seamless flow of information between management and directors during crises provides a crucial advantage. Another study suggests that market reactions to unified roles vary based on context, with positive responses during times of greater adversity. Experts emphasize the need for nuanced arguments in the CEO-chair debate, suggesting that the decision depends on factors such as the company’s life stage and market conditions.
Source: Fortune
What Small Business Owners Need to Know About IRS Adjustments
The Internal Revenue Service (IRS) has revealed a set of inflation adjustments for the 2024 tax year, impacting over 60 tax provisions that small business owners should carefully consider for their financial planning and tax strategies. Notable changes include the reinstatement of the Hazardous Substance Superfund financing rate for crude oil and specific petroleum products, with a tax rate of $0.26 per barrel. The standard deduction for 2024 sees an increase, providing relief to taxpayers, with married couples filing jointly benefiting from a $29,200 deduction. The top tax rate remains at 37%, and other marginal rates are adjusted accordingly. Several changes, such as modifications to the Alternative Minimum Tax (AMT) exemption, the Earned Income Tax Credit (EITC) amount, and various limits for qualified transportation fringe benefits and employee salary reductions, should be carefully noted. The adjustments reflect the evolving economic landscape, emphasizing the importance for small businesses to stay informed and potentially seek guidance from tax professionals to navigate these changes effectively.
Source: Small Business Trends
Miroma Founders Network Launches to Support Growing Ventures
A new global media buying and marketing agency, Miroma Founders Network (MFN), is set to launch with the backing of media executive Marc Boyan and Founders Forum chief Brent Hoberman. Aimed at start-ups, smaller tech businesses, and venture-backed companies at various stages, MFN will provide advertising and marketing services tailored for entrepreneurs who may struggle to afford larger agency assistance. The joint venture is particularly timely as many start-ups face challenges in fundraising due to a venture capital market slowdown and economic uncertainties. Operating initially in the UK, US, and Asia-Pacific regions, MFN aims to enhance the marketing competitiveness of small businesses by offering services such as marketing consultancy, communications planning, media planning and buying, as well as data and analytics infrastructure implementation.
Source: Financial Times
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