"Seven Smokin' Hot Buttons" (Corporate Board Member)

September 3, 2009

SULLIVAN & CROMWELL LLP Partner Jim Morphy was quoted in Corporate Board Member's article titled, "Seven Smokin' Hot Buttons." The article discussed current concerns of boards of directors, such as risk management, government involvement in board activities, executive compensation, how to prepare boards for the future, shareholder relations, defining the roles of boards and succession planning. Mr. Morphy commented on the danger of simply putting a "label" on risk management and then putting it in some "check the box" outline. “Like a lot of things, ‘risk management’ now has a name and has become its own ‘topic’ instead of something that was simply assumed to be part of the decision making process. But I worry about casually bandying about these types of highly generalized labels." Corporate Board Member noted Mr. Morphy's view "that some references to risk management may sound as if the risk disappears." He added that risk will always be a factor in business, “Business is built on taking risks and we shouldn’t lose sight of that. You want business plans to be well thought out and the risks weighed, but, at the end of the day, there is risk—no matter how much thought and planning goes into it. It’s inherent in business. People have to use the term and apply with this reality attached to it.”