How do journalists recognize the corporate governance stories lurking behind breaking news, such as the sudden dismissal of a CEO, the “retirement” of a board chairman, or a sudden and unexpected shift in strategy?

Often such stories emerge at the same time that the company is going through a major change, whether it’s a major acquisition, expansion or setback. Along with regulatory and financial issues outlined in Chapters 5 and 6, some other possible tip-offs are:

• Announcements of plans to buy companies or be acquired

• The selling off of divisions, brands or facilities

• Moves by directors to join other boards, resign from their companies or sell shares

• Moves by individual or institutional shareholders to challenge company policies or practices

Personality-driven stories about CEOs, clashes between board and management, disagreements between regulators and company officials or between employees and management and about shareholder activists’ concerns have great audience appeal and potential for breaking news.