Boardroom Governance with Evan Epstein

Brian Stafford, CEO of Diligent: "Companies That Do ESG The Right Way, Tie It Back To Their Strategy."

Oct 16, 2023

Brian Stafford, CEO of Diligent, discusses topics such as governance oversight, the new Diligent One Platform, his book on governance in the digital age, ESG and its ties to company strategy, and the distinctions between public and private equity-backed boards.

45:00

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Episode guests

Brian Stafford

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Episode notes

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Quick takeaways

Companies that prioritize ESG and tie it back to their strategy tend to do well for their shareholders over time.

Private equity backed companies embrace radical transparency, allowing for greater oversight and long-term thinking for sustainable growth.

Deep dives

The Importance of Radical Transparency and Long-Term Thinking in Private Equity Backed Companies

Private equity backed companies operate with a culture of radical transparency, with detailed data and information being shared proactively with the board. This level of transparency allows for greater oversight and decision-making. Moreover, private equity investors typically have a long-term focus, which encourages CEOs to think beyond short-term gains and prioritize sustainable growth. By taking care of stakeholders, including employees and customers, companies can ultimately generate better returns for shareholders.

Introduction

2min

Introduction and Background of Diligent

12min

Exploring the Evolution of Governance in the Digital Age

2min

The Debate on Corporate Purpose and ESG Backlash

22min

Books that influenced their lives and the role of mentors in their careers

2min

The Power of Challenging Relationships

5min

0:00 -- Intro.

1:21-- About this podcast's sponsor: The American College of Governance Counsel.

2:17 -- Start of interview.

2:49 -- Brian's "origin story." He founded a startup that sold cars online in the dot com era (CarOrder) based out of Austin TX. He later worked at McKinsey & Co. From there he moved to Diligent as CEO.

6:17 -- The history, mission and current focus of Diligent Corporation. "The role of governance oversight has become much more of an exercise in risk management."

11:48 -- About their new product: The Diligent One Platform.

14:42 -- About his book Governance in the Digital Age. A Guide for the Modern Corporate Board Director (co-authored with Dottie Schindlinger.)

17:02 -- On ESG and its political backlash. On stakeholders (BRT Restatement of the purpose of the corporation, 2019). "If you do well for your stakeholders, you're going to do well for your shareholders over a long period of time."

20:00 -- How to think about ESG: "The companies that do it the right way, tie it back to their strategy." "In the US, [ESG] is much more tied to climate."

23:32 -- His experience working with and serving on a private equity backed company. Distinctions with public company boards. "In PE-backed boards, you get to experience radical transparency around data and information with your board." [reference on Netflix case study by Stanford GSB]. "The longer time nature and longer term hold period of private investors can set the right mindset of management and the company around long term."

29:36 -- On international distinctions in corporate governance, and running global companies. "Half our clients are located outside of the US and Canada, and more than half of our employees are located outside of US/Canada."

31:47 -- On geopolitical risks, and how boards should address the rapidly changing landscape.

34:16 -- On board composition: 1) They should look like customers or employees or some combination of the two, 2) technology fluency of the board should increase. How to tackle board diversity. "I look for board members who can help me see things that I'm not seeing." (achieved through directors with different backgrounds)

38:05 -- Book that has greatly influenced his life: Moneyball by Michael Lewis (2003)

39:09 -- His mentors, and what he learned from them: a few different partners at McKinsey & Co.

40:14 -- Quotes that he thinks of often or lives his life by: "People won't remember what you said or did, they will remember how you made them feel." by Maya Angelou.

41:13 -- An unusual habit or an absurd thing that she loves: he gets up super early (4am or earlier).

43:00 -- The living person he most admires: his mother.

Brian Stafford is the Chief Executive Officer at Diligent, a leading GRC SaaS company providing solutions across governance, risk and compliance.

This podcast is sponsored by the American College of Governance Counsel.

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Music/Soundtrack (found via Free Music Archive): Seeing The Future by Dexter Britain is licensed under a Attribution-Noncommercial-Share Alike 3.0 United States License

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