06/02/15 NACD/KPMG Spring Audit Roundtable
After setting the strategy, many would argue that capital allocation is management's most significant challenge. Generating and holding record levels of cash—as many companies are today—creates more options for how to best utilize that cash. Pay dividends? Repurchase stock? Make a strategic acquisition? Invest in organic growth?
With traditional investors and activists sharpening their focus on how companies are deploying capital, and competitive pressures requiring more frequent shifts in strategy and spending priorities, the capital allocation process needs to be robust and well-oiled—and the board has a key role to play.
KPMG's Spring Roundtable Series—Capital Allocation and the Board of Directors—explored key questions and considerations for the board in overseeing the capital allocation process. Does the company's allocation of capital align with its strategic priorities? How much flexibility does the capital plan require, and does the company have the right balance sheet to support it? While oversight of capital allocation is ultimately the responsibility of the full board, are committee responsibilities—e.g., for progress updates and special situations—clear? Does management have a robust capital allocation process, including the right leadership and talent, to determine how best to deploy capital across the enterprise? How might biases in the process, such as compensation and incentives, influence capital allocation decisions?
Location and Time
Tuesday, June 2, 2015
7:00 AM – 7:30 AM | Registration and Breakfast
7:30 AM – 9:30 AM | Roundtable Session
The Houstonian Hotel | 111 N. Post Oak Ln | Houston, TX 77041