On the board’s agenda

Perspectives

On the Board’s agenda

Top of mind topics for board members

The Center for Board Effectiveness is pleased to present On the board’s agenda, a bi-monthly publication focused on topics that are top of mind for board members.

International taxes: Seismic changes may be coming

December 2019

After decades of operating within a generally stable international tax regime, multinational companies have more recently seen a flurry of activity, thanks to a global focus on profit shifting and the US 2017 tax overhaul. With the potential for international tax rules to undergo seismic shifts in the next several years, board members would do well to keep an eye on the work being performed at the Organisation for Economic Co-operation and Development, or OECD.

Following the first phase of its Base Erosion and Profit Shifting (BEPS) project, the Paris-based OECD is hosting an ambitious project in which 130+ nations (collectively known as the “Inclusive Framework”) are attempting to revise the international tax architecture to account for the ways in which the digitalization of the global economy has blurred traditional lines of jurisdiction. Whether consensus can be reached by so many countries with vastly different priorities, politics and domestic industries remains to be seen, but there may be significant risks to entities ignoring this project.

The OECD project has the potential to significantly impact a company’s risk profile and strategic planning, two of the key areas of board oversight. Accordingly, directors should stay informed about the status of the project and how it might impact the companies they serve.

International taxes: Seismic changes may be coming

What the board needs to know about the future of mobility

December 2019

The transformation to a new mobility ecosystem—the “future of mobility”—is being driven by a series of converging technological and social trends: the rapid growth of shared mobility, including carsharing and ridesharing; the increasing viability of electric and alternative powertrains; new modes of transportation like e-scooters; and the growth of connected and, ultimately, autonomous vehicles (AVs). The result is a new ecosystem of mobility that can offer faster, cheaper, cleaner, safer, more efficient, and more customized travel. This new ecosystem, which in some ways is already here, will affect far more than automakers and transportation providers—industries from insurance, telecom, and health care to energy and media should reconsider how they create value in this emerging environment.

A key role of the board is to provide strategic oversight, including forward-looking perspectives, to help the organization build and maintain competitive advantage in the face of change. The purpose of this publication is to help board members understand the impact of this fundamental shift from personally owned, driver-driven vehicles toward a future mobility system centered around seamless integrated mobility—and the implications for future value creation.

What the board needs to know about the future of mobility
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