Boardroom Governance with Evan Epstein

Suzanne Brown: The NYSE Board Diversity Initiative.

Sep 26, 2023

Suzanne Brown, executive leader and member of the NYSE Board Diversity Initiative, discusses key ESG initiatives, international directors, board dynamics, and the evolution of board diversity. They also touch on the backlash against ESG and DEI efforts, the average age of directors, and the current state of capital markets.

53:38

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Episode guests

Suzanne Brown

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Episode notes

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Quick takeaways

The NYSE has implemented three key initiatives for promoting ESG: the Sustainability Advisory Council, Syndio collaboration, and Advisory Board Council, all aimed at addressing different aspects of ESG.

Over 15% of the candidates placed by the NYSE Board Diversity Initiative are international, highlighting the importance of diversity on a global scale.

ESG initiatives face a branding problem, requiring efforts to better communicate their value and benefits.

Deep dives

The Importance of Diversity on Corporate Boards

The podcast episode features Suzanne Brown, Senior Program Manager of the NYSE ESG Initiatives, discussing the NYSE's efforts to promote diversity on corporate boards. Brown highlights the three programs for ESG, including the Sustainability Advisory Council, pay equity partnerships, and the Board Advisory Council. She emphasizes the value of diversity in boardrooms and addresses the need for more diverse candidates to serve on boards. The podcast also touches on other governance trends, such as demand for directors with expertise in supply chain, cybersecurity, and climate change.

Introduction

2min

Living Abroad and Career Choices

28min

The Significance of ESG and Corporate Responsibilities

2min

Board Diversity: Importance and Challenges

15min

Books that Have Influenced Their Lives

2min

Mentors, Women Helping Women, and the Power of Perseverance

2min

Obsession with Researching and Adopting Obscure Dog Breeds

2min

Unusual Dog Breeds and Admiration for Jimmy Carter

3min

0:00 -- Intro.

1:43 -- Start of interview.

2:11 -- Suzanne's "origin story" "One of my proudest jobs was working with the NJ Pandemic Relief Fund"

14:12 -- Joining the NYSE Board Diversity Initiative. *reference to Chief ("the only private membership network focused on connecting and supporting women executive leaders")

15:22 -- Three key NYSE ESG Initiatives:

The NYSE Sustainability Advisory Council (tackling the "E" in ESG)
The NYSE/Syndio collaboration (tackling the "S" in ESG)
The NYSE Advisory Board Council (tackling the "G" in ESG). It was created to help identify and place diverse candidates to serve on boards (*it has placed 38 board candidates, as of the date of this recording).
1. Council: 25 members ("it launched in 2019 with 16 CEOs of the NYSE")
2. Candidates: ~700 CEO vetted candidates.
3. Companies: all ~2,400 NYSE listed companies + private PE/VC backed companies.

25:04 -- On placing directors on cross-listed (international) companies. "Over 15% of our candidates are international"

26:39 -- On the impact of SB-826, AB-979 and other board diversity efforts. "Intentionality [on this topic] works"

28:47 -- On the ESG and DEI backlash. "ESG really suffers from a branding problem."

31:46 -- Board dynamics, age and generational shifts in the boardroom. "The avg age of directors has remained at 64 years old."

33:57 -- On the evolution and trends in board diversity. On the "pipeline falacy."

36:33-- Current state of capital markets. History of the NYSE.

40:27 -- Other corporate governance trends: term limits, board evaluations ("it's what you do with it afterwards"), global supply chain, green energy transition and cybersecurity expertise. *reference to E107 with David Larcker and Brian Tayan

46:00 -- Books that have greatly influenced her life:

Don Quijote by Miguel de Cervantes (1605 and 1615)
Start with Why by Simon Sinek (2009)

47:54 -- Her mentors, and what she learned from them: "it's more of a collective with other women."

48:41 -- Quotes she thinks of often or lives her life by: "Success is not final, failure is not fatal, it's the courage to carry on that counts." Winston Churchill.

49:18 -- An unusual habit or an absurd thing that he loves: "I love to research obscure dogs."

51:35 -- The living person she most admires: Jimmy Carter.

Suzanne Brown currently leads the NYSE's effort to place more diverse candidates on corporate and private company boards.

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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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