Question 6

Walt Lauren founded his namesake company, The Walt Lauren Company, more than 40 years ago to make major motion pictures about articles of clothing. You may remember The Boots of Madison County, for example. Walt Lauren (who clearly likes to see his name in print) has always been an active owner/manager, even after he took the company public in 1997, continuing to serve as both CEO and Board Chair. The Walt Lauren Company has a classified board structure, with 3 of the 9 board seats up for re-election each year. In addition to Walt Lauren, the board includes 4 key executives of The Walt Lauren Company and 4 of Walt Laurens family members. The Company pays dividends every quarter and has consistently outperformed investor expectations. Unfortunately, Walt Lauren is beginning to show his age.

You have been hired by a group of shareholders to draft a set of corporate governance changes that will strengthen the company and prepare it for being listed on a major stock exchange, as well as for the time when Walt Lauren is no longer able to lead the company. Perhaps that sad day will be memorialized in Big Shoes to Fill.

Required:

Based on the summary above, identify and prioritize the first few governance changes you will recommend. Explain each of your choices.