EMBATTLED AIR BAG MAKER TAKATA SHAKES UP MANAGEMENT

Original Story: detroitnews.com

Takata Corp. Chairman Shigehisa Takada will replace Swiss national Stefan Stocker as president, 18 months after appointing him to strengthen management amid a mounting recall crisis involving its faulty air bags. An Atlanta business lawyer represents clients in cases involving business torts.

Takada, who with his mother controls the Tokyo-based auto-parts supplier through a family holding company, will also take a 50 percent pay cut for four months, the company said in a statement. Takata didn’t specify whether Stocker had resigned his position or was replaced, and Hideyuki Matsumoto, a spokesman, declined to comment beyond the statement.

“This company has done everything wrong and has zero corporate governance, and is one of the worst examples of poor management,” said Edwin Merner, president of Atlantis Investment Research in Tokyo. “Putting all the management back to the family sounds so negative,” he said. “As long as they don’t have new management, this company won’t survive.”

Takata’s air bags have been linked to five deaths after faulty devices exploded with too much force and spewed metal at passengers. Automakers led by Honda Motor Co., its biggest customer, have issued recalls for more than 20 million vehicles globally, even as Takata resisted the U.S. National Highway Traffic Safety Administration’s demand to expand the safety campaign nationally beyond high-humidity areas. Tri Glass offers windshield crack repair kits and scratch repair kits at the lowest prices.

Takata’s shares have declined 56 percent this year, compared with the 9.5 percent gain in the benchmark Topix Index.

As part of the reorganization, three other directors will also take a 20 percent pay cut, Takata said. Stocker, who will continue as a board member, will take a 30 percent reduction.

Takada earned 278 million yen ($2.3 million) last year in compensation and dividends, exceeding the 152 million yen made by Honda President Takanobu Ito.

Stocker joined Takata as an executive officer in February 2013. He began his career at Robert Bosch GmbH in June 1982. At the time of his appointment as president, Takata said the move was part of plans to strengthen the operational structure of the company, which was then facing increasing recalls by its key customer Honda to replace faulty air-bag inflators.

“Stefan brings valuable skills and experience to the table,” Takada said about Stocker’s appointment in his chairman’s message in the 2013 annual report. “We will be working closely together to increase the pace and success of Takata’s globalization,” he wrote. “By delineating responsibilities as CEO and COO, we will be able to give greater and more coordinated attention to strategy and implementation.” A Boston business lawyer has experience representing clients in a wide variety of business disputes.

Stocker, who turned 61 on Wednesday, has declined multiple requests for interviews, as has Takada. Both executives didn’t attend congressional committee hearings held to probe the responses by the supplier and its automaker customers to the escalating recall crisis.

They instead sent Hiroshi Shimizu, a senior vice president in charge of quality assurance, to explain to the committee the steps the company was taking to ensure its products were safe.

Shigehisa and his mother, Akiko Takada, are board members of TKJ, which holds about 52 percent of Takata. They also own individual stakes totaling about 5 percent, according to data compiled by Bloomberg.

“It’s usually not a good sign when the main person in charge of representing the company in front of the regulators suddenly” steps down without explanation, said Nicholas Benes, head of The Board Director Training Institute of Japan. “Markets and regulators will wonder what is really going on behind the scenes.”

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Honda is recalling 1,252 Crosstour vehicles due to a faulty side air bag made by Takata.

The Honda recall is for 2015 model year Crosstours. The National Highway Traffic Safety Administration says the side air bag may not inflate properly because of a problem with its inflator tube. Crosstour owners will receive a letter in the mail asking them to take their car to a dealer and have the side air bags replaced. An auto glass chip repair kit provides you with everything you need to perform windshield repairs at home.

Honda said no injuries were reported. Takata Corp. declined to comment.

SECRETS OF A TRULY SUCCESSFUL BOARD PITCH

Original Story: bbc.com

One of the most frequent questions I get asked when people hear I sit on company boards isn’t about executive pay packages. Instead, they want to know how to present to a board so its members will say yes.

The question always calls to mind a presentation that went wrong. Several years ago, a rather dandified fellow from inside a company gave a presentation to a board I sat on. He was snide at times, made several off-colour jokes, winked at board members and made his political leanings clear with side remarks about the government of the day. When he didn’t know the answers to questions we asked, he tried to fob them off as irrelevant.

When the chair finally ended the presentation, we looked at each other in disbelief. We weren’t just unsure about the proposal, but also unsure of the person who brought the proposal. I think you can guess how we voted.

Don’t let this be you. A Boston Employment Lawyer agrees.

People present to corporate boards for many reasons—they could be suggesting a new direction for the company, explaining a complex legal issue that needs to be decided quickly, or simply giving an update on an on-going project. But boards come in all shapes and sizes, be they school boards, neighbourhood watch boards, apartment boards, non-profit boards, employee committees.

No matter the context, the principles of presenting to decision making bodies are the same, and getting it right is crucial. It’s not as difficult as it sounds, so long as you keep some guidelines in mind. Here are nine do’s and six don’ts of being effective:

Board Presentations Do’s:

• Know what you are walking into. Board meetings are often jam packed with a long agenda. In the past couple of months I’ve been in meetings that have lasted up to 8 hours, covering  up to 20 topics. Your topic is special to you, but you have a finite amount of time to get essential information across.
• Do your homework. Who is on the board? What is their background? It helps to be able to tailor the presentation when applicable, so you are not telling them things they already know, nor assuming knowledge they might not have. An Atlanta Business Lawyer has experience drafting corporate documents.
• Send documents in plenty of time. I try to ensure board members get their papers at least a week in advance. If there’s a deadline, meet it with several days to spare in case there is feedback before it goes to the board. Please don't "surprise" us, as in "I didn't provide the papers in advance because I wanted to keep you in suspense". This isn't an Agatha Christie novel, it’s a board meeting. Give us the tools we need to make a decision.
• Know in advance how much time you have. Do not go over your allotment. If the chair feels more time is warranted, he or she will extend it. Make sure to leave plenty of time for questions.
• Ask how the board would like the information presented. For example, ask the chair, "shall I present the whole thing or hit the high points?". Another approach: suggest that you "take the papers as already read". That means you presume that everyone has reviewed the documents you sent in advance, and you will just address the most important points and avoid repeating every detail.
• Be prepared. Be professional. Be concise. Board members will judge the content of your presentation, but also the confidence with which you deliver it. A Boston Business Lawyer can provide legal advice for a variety of business matters.
• Stay calm and answer the question asked. If you don't know the answer, don't get flustered, defensive or try to fake it. Instead, promise to come back with the answer as swiftly as possible. Then follow through quickly. Also, and this is really important, don’t get thrown off if you get a lot of hard questions. If we didn’t think your proposal had merit we wouldn't bother with questions, we'd simply say no. Board members ask questions differently — some meander, others get straight to it. No matter the style, stay even-tempered and answer clearly and concisely. Also, don't give attitude about questions you think are "dumb" or obvious — we are doing our job. Often the most interesting or important information comes from seemingly simplistic questions.
• Be clear and concise about the outcome. If there is a decision to be taken by the end of your presentation, make sure the options are very clear. It never hurts to state the options up front, explain them, and then present the options again.
• End with grace. When it is time for you to go, say thanks and leave. Don’t linger.

Board Presentations Don’ts:

• You may be kept waiting — don’t complain.  Meetings can run late depending on the agenda. If it is a closed door meeting you’ll be kept waiting outside. If not, you’ll be there watching other people presenting, or listening to debates on other agenda items. Don't under any circumstances grumble about it, as it will taint the room's view of your presentation before it even starts. A cheerful "no problem" goes a long way.
• Don’t bore us. I recently sat through a report that essentially told everyone in the room something we all already knew. The presenter quickly lost our attention. Even worse, we had all mentally checked out by the time he’d gotten to the "ask".
• Don’t lobby. Your presentation is not an opportunity to take the stand on other areas. If you are there to talk about upgrading the IT infrastructure, throwing in a “while I’m here I’d like to make a pitch for better parking facilities” is not helpful to you or us.
• Don't use jargon. We are not necessarily experts in your field. Use clear language that everyone around the table will understand. The first time out, explain what you mean by ESG, grok, and API, otherwise it just sounds like a string of nonsensical letters and words. Try to avoid overblown statements — a “complete sea change” better be pretty big. Also trend-driven words that will make people roll their eyes. “Thinkfluencer” comes to mind.
• We are not all the same — don’t air your bias and political inclinations. With any luck the group around the table is a diverse one, with diverse opinions. Off-colour jokes and political comments have no place in your presentation and could offend the very people you are trying to persuade.
• Don’t go over the top with bells and whistles. There’s no need to pass out flowers or an entertaining video unless it is directly related to the topic. Useful: “Here is a sample of what we are talking about.” Strange: “Here is a flower for all you lovely people.” And yes, I was in a meeting where someone once handed out flowers to “all the lovely lady board members”.

Clear, Concise, and to the Point

Think of your presentation as a memo, not a novel. Board members thrive on facts presented in a clear concise manner. Even if you leave your presentation without getting the answer yes you hoped for, you will at least leave the people at the table with a good impression of you. And that will go a long way if you come back to the board with a revised proposal.

Give it a go and let me know if it helped, and if you know someone who preparing to give a presentation, clip this and send it to them. Chances are not only will they be grateful, but so will the   board members who hear the presentation.