Bringing Opportunity Oversight Onto the Board’s Agenda

These days, many boards of directors devote much of their time and energy to risk management. But oversight of a company’s opportunity-generating capabilities is just as important.

LARRY BENNIGSON AND FRANK S. LEONARD

CORPORATIONS ARE AWASH in cash. In early 2013, nonfinancial U.S. corporations had more than $1.5 trillion in cash and equivalents.¹ However, a recent survey of 50 Standard & Poor’s 500 companies found that they were planning to increase capital spending by only 2%, indicating a dearth of big growth opportunities.² Given the sluggish economy and the level of cash on hand, one would think the top priority for many companies would be finding investment opportunities where they ...