Thou Shall Judge ... and Be Judged

A leading corporate governance analysis and advisory firm is under fire for its own corporate governance. And while the story has legs because it's dripping with irony, the behind-the-scenes dynamic reads like a rich GRC case study.

"RiskMetrics is taking positions on several governance issues that are at odds with what it recommends for other public companies," Cary Klafter, Intel's corporate secretary, told The Wall Street Journal in a June 2 article ("Turning the Tables: RiskMetrics's Head Faces His Day of Shareholder Judgment"). "Many business leaders would consider all this to be a bit ironic."

Yet, RiskMetrics CEO-chairman Ethan Berman -- whose dual role marks one of several points of contention -- seems genuinely frustrated by how difficult it has been for him to maintain a highly transparent culture and financial reporting process now that his company is publicly traded.

Klafter is right -- there is irony here. More important, though, there are plenty of GRC object lessons for other executives, directors, and shareholders to glean.