Boardroom Governance with Evan Epstein

Wolfe Tone & Heather Gates (Deloitte): Insights on Private Company Governance

Episode Summary

Wolfe Tone is the leader of Deloitte Private for the US and globally, and Heather Gates is the national Emerging Growth Company (EGC) business leader for Deloitte, overseeing the firm’s EGC, Private Equity, and Deloitte Private Audit & Assurance teams. We dive into governance practices in privately-held businesses, covering closely held corporations, LLCs, family-owned enterprises, and VC- and PE-backed companies. Additionally, we explore insights from Deloitte’s 2024 Private Company Outlook Survey, the role of independent directors, and the evolving landscape of ESG and cybersecurity. Finally, we discuss the rise of public benefit corporation structures in AI companies, board-driven talent management, and trust as a core tenet of governance. If you like this show, please consider subscribing, leaving a review or sharing this podcast on social media. You can also contribute as a Patron on the link patreon.com/BoardroomGovernancePod or you can subscribe to the Boardroom Governance Newsletter at evanepstein.substack.com This podcast is sponsored by the American College of Governance Counsel.

Episode Notes

(0:00) Intro

(1:12) About the podcast sponsor: The American College of Governance Counsel.

(1:59) Start of interview. 

(2:57) Heather Gates' "origin story."

(5:17) Wolfe Tone's "origin story."

(10:23) On the governance of privately-owned businesses. Distinction with having "outside investors." 

(15:20) On the nuances of family-owned businesses. *Reference to my podcast series on Succession show.

(18:28) On growth of LLC structures.

(20:53) On VC-backed company governance. *Note UC Law SF's VCBA.

(23:42) On the value of boards and good governance. When is the right time for a more formal governance structure.

(27:40) Deloitte Private Company Pulse Survey on Governance (from July 2024).

(31:40) On Climate Risk and ESG in private companies.

(34:16) On Cybersecurity Risk.

(38:20) On the evolving role of independent directors in private companies.

(42:28) On the rise of the public benefit corporation (PBC) structure in AI companies

(46:08) On the role of the board in developing talent.

(48:38) On the future of trust as a core tenant of governance.

(50:38) What are the 1-3 books that have greatly influenced your life: 

  1. Wolfe:
    1. The Art of War by Sun Tzu  (roughly 5th century BC)
    2. Anything by Stephen Covey.
    3. When the Game Is Over, It All Goes Back in the Box by John Ortberg (2007)
  2. Heather:
    1. The Hard Thing about Hard Things by Ben Horowitz (2014)
    2. Boundary Boss by Terri Cole (2021)
    3. The Untethered Soul by Michael Singer (2007)

(51:52) Who were their mentors, and what they learned from them.

(53:36) Quotes they think of often or live their life by.

(54:13) An unusual habit or an absurd thing that they love.

(54:40)  The living person they most admire.

Wolfe Tone is the leader of Deloitte Private for the US and globally, and Heather Gates is the national Emerging Growth Company (EGC) business leader for Deloitte, overseeing the firm’s EGC, Private Equity, and Deloitte Private Audit & Assurance teams.