2023 has seen a consistent pattern of collapsed corporations, due to the failed governance of their board of directors. Many of these board members remain influential in financial and political sectors, alongside other endeavors. Here is what the former board members of some of the biggest corporate failures are doing now:

1. Theranos, founded by Elizabeth Holmes, has had constant media coverage since rumors of fraud first began back in 2015. Elizabeth Holmes and former partner, Ramesh Balwani, were both recently sentenced to over 10 years in prison. The compensation packages of Theranos’ board members included a $150,000 annual salary and 500,000 shares in the company. Below are some of the board members of Theranos and what they are currently doing:

• • George Shultz, former U.S. Secretary of State, worked with the Hoover Institution at Stanford University until his death in 2021 at age 100.

  • Henry Kissinger, former U.S. Secretary of State, recently received the Bavarian Maximilian Order for Science and Art from Minister-President of Bavaria, Markus Soder, and has continued his writing.

• • Riley Bechtel, former CEO of Bechtel Group, is currently a director of Fremont Investors. He also works with The Conservation Fund Corporate Council, The Thacher School Board of Trustees, and The American Society of Corporate Executives.

  • David Boies, remains chairman of Boies Schiller Flexner, which he founded, and is currently representing victims of Jeffrey Epstein in court.

  • William Foege, former director of the CDC, continues to work with Emory University as Presidential Distinguished Professor Emeritus of International Health.

  • Richard Kovacevich, former CEO and chairman of Wells Fargo, is a life governor of the San Francisco Symphony and elected trustee for the San Francisco Museum of Modern Art.

  • Jim Mattis, former U.S. Defense Secretary, is currently senior counselor at The Cohen Group and was appointed the Davies Family Distinguished Fellow at the Hoover Institution at Stanford back in 2019.

  • Fabrizio Bonanni, former executive VP of Amgen, currently serves on Stevanato Group’s Internal Audit Committee and on the Advisory Board of InCube Labs.

2. Silicon Valley Bank was the 16th largest U.S. bank before it collapsed. SVB’s board of directors were compensated, on average, $283,142 in 2021, with the lowest compensation being $103,613 and the highest being $461,532. Listed below are what SVB Financial Group’s board members are doing now:

• • Kate Mitchell, co-founder of Scale Venture Partners, is a board member for Fortive Corporation, Silicon Valley Community Foundation, and several nonprofits. She continues to work with Stanford Law School and remains active as a Kauffman Fellows Mentor.

  • Elizabeth Burr remains interim CEO of RiteAid, which has just recently filed for bankruptcy

  • Garen Staglin, the owner of Staglin Family Vineyard, is vice chairman of Profit Velocity Solutions, co-chairman of Healthy Brains Global Initiative, chairman of One Mind, which he founded, and serves on the Stewardship Board for World Economic Forum.

  • Mary J. Miller, former U.S. Secretary for Domestic Finance, is currently director of The Jeffrey Company.

  • Tom King, former CEO of Investment Banking at Barclays, is currently a board member of Radius Global Infrastructure.

  • Alison Davis, co-founder and managing partner of Fifth Era, is also currently a managing partner at Blockchain Coinvestors, board director at Kraken Digital Asset Exchange, board director and audit committee chair at Pacaso, and board member at YPO, among other companies.

  • Beverly Kay Matthews, former Ernst & Young board member, is currently independent director at Coherent Corp.

  • Eric Benhamou remains CEO of Benhamous Global Ventures.

  • Jeffrey Maggioncalda remains CEO of Coursera.

  • Joel Friedman, president of Business Process Outsourcing at Accenture, is also an advisory board member for Currency Capital.

  • John Clendening, former CEO of Blucora, continues to serve in board roles assisting the Feed the Children nonprofit, and is the founder and CEO of Forme Financial.

  • Richard Daniels, former executive VP and Chief Information Officer of Kaiser Permanente, is a board director at Fastly and CSAA Insurance Group, among several other companies.

  • Roger Dunbar, former Global Vice Chairman at Ernst & Young, remains VP of board of directors for Desert Mountain Club.

3. Signature Bank, a New-York based company, collapsed shortly after Silicon Valley Bank. Signature Bank board members were compensated about $314,233 on average. Here are the Signature Bank board members and where they are currently:

• • Derrick D. Cephas, former president and CEO of Amalgamated Bank, is currently director of D.E. Shaw & Co and the Fresh Air Fund.

  • Michael Pappagallo, founder and CEO of Aspen Realty, continues to work in the real estate sector.

  • Jalak Jobanputra remains a managing partner of Future Perfect Ventures, which she founded, and serves on the Advisory Board of Women in Digital for L’Oreal.

  • Barney Frank, former U.S. congressman, remains associated with U.S. politics but is retired.

  • Maggie Timoney remains the CEO of HEINEKEN USA.

  • Judith A. Huntington remains president of Pegasus Financial Concierge and serves on the board of several financial institutions.

4. First Republic Bank was once one of the most successful banking companies before its collapse. First Republic Bank’s board members were compensated, on average, about $338,811, without taking the major executives into account. The board members of First Republic Bank and their current activities are listed below:

• • James Herbert II, who founded First Republic Bank and served as executive chairman, now seems to be headed towards retirement.

  • Katherine August-deWilde, former senior VP and Chief Financial Officer at PMI Group, remains on the board of directors for Sunrun, Eventbrite, OpenGov, and Tipping Point and continues philanthropic work.

  • Frank J. Fahrenkopf Jr., former president and CEO of the American Gaming Association, continues to serve the Commission on Presidential Debates and the International Republican Institute, and remains on the board of directors for several New York Stock Exchange public companies.

  • Boris Groysberg remains a professor of business administration at Harvard Business School.

  • Sandra R. Hernandez, MD, continues work in public health as the President and CEO of the California Health Care Foundation

  • Pamela J. Joyner remains a partner of Avid Partners, which she founded. She is also a member of the board of the Art Institute of Chicago and the J. Paul Getty Trust.

  • Reynold Levy, former president of the Robin Hood Foundation, is currently senior advisor to East Rock Capital and continues to work as a consultant to commercial and nonprofit companies.

  • Duncan L. Niederauer, former CEO of NYSE, is currently a partner at Communitas Capital Partners and Transcend Capital Advisors, both of which he helped to found.

  • George G.C. Parker, former Director of Colony Capital, currently teaches at Stanford Business School.

  • Michael J. Roffler, former Certified Public Accountant at KPMG, continues philanthropic work, serving as a board member for the Greater Bay Area American Heart Association.

  • Roger O. Walther, Chairman of Tusker Corporation, is now serving as Director Emeritus of The Charles Schwab Corporation and continues to work with the UCSF Foundation.

In today’s digital era, the threat landscape is constantly evolving, and businesses are facing increasingly sophisticated cyber threats. Recognizing the critical need for enhancing cybersecurity practices and fostering transparency in the corporate sector, the U.S. Securities and Exchange Commission (SEC) has taken a significant step forward.

On July 26, 2023, the SEC adopted final rules on public company cybersecurity disclosures, aiming to safeguard investors and bolster the resilience of the nation’s financial markets. In this blog post, we delve into the key aspects of the SEC’s latest move and its potential impact on businesses and the broader cybersecurity landscape. Background on Cybersecurity Disclosures Prior to the adoption of these final rules, the SEC had issued guidance on cybersecurity disclosures to help companies address potential risks and comply with existing regulations. However, the evolving nature of cyber threats and the increasing frequency of high-profile cyber incidents demanded a more comprehensive approach. The Final Rules The SEC’s Final Rules on cybersecurity disclosures represent a significant evolution in how public companies must handle and disclose information about their cybersecurity practices.

Here are the main highlights of the rules:

• Disclosure Framework: The new rules establish a comprehensive framework for cybersecurity disclosures, encouraging companies to provide clear, timely, and material information about their cybersecurity risks and incidents. By doing so, investors will have access to more accurate data to make informed decisions.
• Materiality Assessment: Public companies are now required to assess the materiality of their cybersecurity risks and incidents. Materiality is a crucial factor in determining what information should be disclosed to investors, ensuring that only significant cybersecurity matters are reported.
• Internal Controls Assessment: The SEC emphasizes the importance of robust internal controls related to cybersecurity risk management. Public companies are expected to evaluate the effectiveness of these controls regularly and disclose relevant findings.
• Incident Reporting Timelines: The Final Rules introduce specific timelines for reporting cybersecurity incidents. Companies must promptly disclose material incidents to the SEC to prevent any potential delays in information dissemination.
• Impact on Board of Directors: The rules underscore the responsibility of the board of directors in overseeing cybersecurity risk management and disclosure practices. This provision enhances accountability and ensures that cybersecurity is given the attention it deserves at the highest levels of the organization.

The adoption of these Final Rules by the SEC brings several key benefits for businesses, investors, and the overall cybersecurity landscape:

• Heightened Transparency: By mandating detailed and timely disclosures, the Final Rules foster transparency in public companies’ cybersecurity practices. This increased transparency, in turn, strengthens investor confidence and trust in the financial markets.
• Improved Cybersecurity Practices: The Final Rules encourage public companies to reevaluate and enhance their cybersecurity risk management strategies. The emphasis on robust internal controls and regular assessments will help companies better prepare for and mitigate cyber threats.
• Investor Protection: With access to more comprehensive information about cybersecurity risks and incidents, investors can make more informed decisions. They will have a clearer understanding of the potential impact of cyber threats on a company’s financial performance and reputation.
• Deterrence Effect: The implementation of clear reporting timelines for cybersecurity incidents may act as a deterrent against cybercriminals, discouraging them from targeting vulnerable organizations.

While the SEC’s Final Rules are undoubtedly a step in the right direction, compliance with these regulations poses certain challenges for public companies:

• Resource Constraints: Smaller companies with limited resources may find it challenging to meet the rigorous reporting requirements and invest in robust cybersecurity practices.
• Rapidly Evolving Threat Landscape: Cyber threats evolve rapidly, making it challenging for companies to accurately assess materiality and disclose incidents within prescribed timelines.
• Avoiding Overdisclosure: Striking the right balance in disclosing cybersecurity information is crucial to avoid unnecessary panic among investors and competitors.

The SEC’s adoption of Final Rules on public company cybersecurity disclosures marks a pivotal moment in enhancing transparency and resilience in the corporate sector. By promoting clearer and more timely reporting of cybersecurity risks and incidents, these rules safeguard the interests of investors while encouraging public companies to bolster their cybersecurity defenses. As cyber threats continue to evolve, compliance with these rules will play a crucial role in protecting businesses, investors, and the broader financial ecosystem from the growing menace of cybercrime.