The Board’s Role in Capital Allocation
A feature article in NACD Directorship Magazine
Despite unprecedented levels of cash on U.S. public company balance sheets, management continues to treat the asset as a scarce commodity. Shareholders’ insatiable appetite for growth remains even as many companies grapple with continued economic uncertainty and heightened regulation across many sectors. And so, management looks for a more informed and efficient use of capital across its wide array of deployment alternatives—mergers and acquisitions, dividends and share repurchase programs, and organic growth opportunities.
In light of shareholder demands for transparency and good governance, what is the board’s role in helping to shape those investment decisions?
Understand more about the boards of directors role in capital allocation decisions, both serving and protecting shareholder value through advice, strategic direction and oversight, by reading the attached NACD Directorship Magazine article featuring Chris Ruggeri, principal and M&A Leader for Deloitte Financial Advisory Services LLP, and Sara Elinson, principal, Deloitte Financial Advisory Services LLP.
Posted with permission from NACD Directorship, copyright 2012.