There are 11 members in Dell’s board of directors. Michael Dell the founder and CEO leads the team with his members all being experts and experienced in their allocated field of responsibility. Every member is given a specific task and governance to which they are fit for and either have given over a decade working in DELL or have proven their expertise in other organizations and shown similar traits after moving to Dell. For example Allison Dew responsible for the global marketing organization joined in 2008 and have contributed to data driven marketing, understanding customer perception and integrated planning. Previously she worked in the marketing leadership role in Microsoft. Jeff Clarke on the other hand is the Vice Chairman, Products and Operations and is responsible for Dell’s global supply chain. He joined Dell in 1987 as a quality engineer, has spent over 30 years in the company and knows intricate workings of the company. He used to work in Motorola prior to joining Dell. Let us see how effective governance is at Dell in regards to the following.
Accurate Financial Reports and controls
Generally speaking the CEO and CFO (Mr. Sweet in case of DELL) are the main responsible people for overseeing financial reports and controls. With them the other BOD members also have responsibility to ensure and oversee that the company is exercising sound financial practices (Gamble, Peteraf, & Thompson Jr, 2015).
Concerning the effective governance at Dell in regard to accurate financial reports and control it is seen that Dell has given the responsibility of corporate controller and chief account officer to Mr. Thomas W. Sweet a 16 year employee working in the same organization growing through the ranks and has been handling global accounting, tax, treasury and investor relations, as well as global financial services in the past years. (Round Rock, 2014)
Dell has two sub committees in regard to financial aspects of the company. One is the audit committee which helps in providing oversight to the BOD in relation to the financial statement and other disclosures to be done to the shareholders, internal control and audit process. The other committee is the Finance committee which oversees all areas concerned with corporate finance such as capital structure, banking, foreign exchange and share repurchase (Dell, 2018). "Anyone who has a concern about Dell’s conduct, accounting, financial reporting, internal controls or auditing matters, may communicate that concern directly to the independent directors (through the Presiding Director) or to the Audit Committee (through the committee chair) (Dell, 2018).”
Critical appraisal of strategic action plans
"Many boards have found that meeting agendas become consumed with compliance matters and little time is left to discuss matters of strategic importance. (Gamble, Peteraf, & Thompson Jr, 2015)” Therefore strategic plans are done outside the regular work of the organization as a refresher or retreat. The strategic plans are conducted every five years. Their strategic plan of converting the public company into private company was completed recently in which all the BOD members played their part to support with the transition.
Evaluation of the strategic leadership skills of the CEO
The board members are appraised annually and administered by the Governance and Nominating Committee and the CEO is appraised by the BOD members. This is mentioned in their corporate responsibility and also can be seen in their website. The strategic
Executive compensation
The Leadership Development and Compensation Committee shall have the responsibility for recommending the compensation to the non-employee directors. This is done in careful study of the compensation structure of directors in other companies. It is also done to make it transparent and easy for the shareholders to understand and should also be competitive keeping in mind the long term goal of the organization. "On an annual basis, the Leadership Development and Compensation Committee shall review non-employee director compensation and benefits (including insurance and indemnity) with the full Board. (Dell, 2018)”
These show clear guidelines inside Dell company which support in effective governance.
Gamble, J. E., Peteraf, M. A., & Thompson Jr, A. A. (2015). Essentials of Strategic Management The quest for competitive management. NewYork: McGraw-Hill Education.
Round Rock. (2014, January 4). Dell Names Thomas W. Sweet Senior Vice President and Chief Financial Officer . Retrieved from Dell, Financial News: dell.com/learn/us/en/uscorp1/secur...
There are 11 members in Dell’s board of directors. Michael Dell the founder and CEO leads the team with his members all being experts and experienced in their allocated field of responsibility. Every member is given a specific task and governance to which they are fit for and either have given over a decade working in DELL or have proven their expertise in other organizations and shown similar traits after moving to Dell. For example Allison Dew responsible for the global marketing organization joined in 2008 and have contributed to data driven marketing, understanding customer perception and integrated planning. Previously she worked in the marketing leadership role in Microsoft. Jeff Clarke on the other hand is the Vice Chairman, Products and Operations and is responsible for Dell’s global supply chain. He joined Dell in 1987 as a quality engineer, has spent over 30 years in the company and knows intricate workings of the company. He used to work in Motorola prior to joining Dell. Let us see how effective governance is at Dell in regards to the following.
Accurate Financial Reports and controls
Generally speaking the CEO and CFO (Mr. Sweet in case of DELL) are the main responsible people for overseeing financial reports and controls. With them the other BOD members also have responsibility to ensure and oversee that the company is exercising sound financial practices (Gamble, Peteraf, & Thompson Jr, 2015).
Concerning the effective governance at Dell in regard to accurate financial reports and control it is seen that Dell has given the responsibility of corporate controller and chief account officer to Mr. Thomas W. Sweet a 16 year employee working in the same organization growing through the ranks and has been handling global accounting, tax, treasury and investor relations, as well as global financial services in the past years. (Round Rock, 2014)
Dell has two sub committees in regard to financial aspects of the company. One is the audit committee which helps in providing oversight to the BOD in relation to the financial statement and other disclosures to be done to the shareholders, internal control and audit process. The other committee is the Finance committee which oversees all areas concerned with corporate finance such as capital structure, banking, foreign exchange and share repurchase (Dell, 2018). "Anyone who has a concern about Dell’s conduct, accounting, financial reporting, internal controls or auditing matters, may communicate that concern directly to the independent directors (through the Presiding Director) or to the Audit Committee (through the committee chair) (Dell, 2018).”
Critical appraisal of strategic action plans
"Many boards have found that meeting agendas become consumed with compliance matters and little time is left to discuss matters of strategic importance. (Gamble, Peteraf, & Thompson Jr, 2015)” Therefore strategic plans are done outside the regular work of the organization as a refresher or retreat. The strategic plans are conducted every five years. Their strategic plan of converting the public company into private company was completed recently in which all the BOD members played their part to support with the transition.
Evaluation of the strategic leadership skills of the CEO
The board members are appraised annually and administered by the Governance and Nominating Committee and the CEO is appraised by the BOD members. This is mentioned in their corporate responsibility and also can be seen in their website. The strategic
Executive compensation
The Leadership Development and Compensation Committee shall have the responsibility for recommending the compensation to the non-employee directors. This is done in careful study of the compensation structure of directors in other companies. It is also done to make it transparent and easy for the shareholders to understand and should also be competitive keeping in mind the long term goal of the organization. "On an annual basis, the Leadership Development and Compensation Committee shall review non-employee director compensation and benefits (including insurance and indemnity) with the full Board. (Dell, 2018)”
These show clear guidelines inside Dell company which support in effective governance.
References
Dell. (2018, September 14). Corporate Governance Principles . Retrieved from Dell, international site: http://euro.dell.com/content/topics/global.aspx/about_dell/investors/corp_gov/corp_gov?c=eu&l=en
Gamble, J. E., Peteraf, M. A., & Thompson Jr, A. A. (2015). Essentials of Strategic Management The quest for competitive management. NewYork: McGraw-Hill Education.
Round Rock. (2014, January 4). Dell Names Thomas W. Sweet Senior Vice President and Chief Financial Officer . Retrieved from Dell, Financial News: dell.com/learn/us/en/uscorp1/secur...
Sweet, T. (2018, September 14). Tom Sweet . Retrieved from Linkedin: linkedin.com/in/tom-sweet-1690929