Enron : tout change, rien ne change

But a 2016 Enron board briefing would be much more than a financial history lesson. For the continuing relevance of Enron is at least two-fold.

First, it provides jaw-dropping examples of problematic governance conduct from which no board, at any time, is safely immune.

Second, it provides a clear explanation for the corporate accountability environment along with the enactment of Sarbanes Oxley. In essence, Enron is the “root” of the modern corporate governance “tree.” The emphasis on director-independence; governance principles; “best practices”; codes of corporate ethics; financial transparency; whistleblower access; informed decision-making; enhanced board oversight; conflicts and compensation sensitivity and ”constructive skepticism” can be directly traced to the perceived and admitted failures of the Enron board. Finally, the Enron circumstances should provide a little “ping” in the back of the brain, that “the smartest guys in the room” have a nasty habit of popping up again, and again, in executive suites across industry sectors, year after year.