New era of governance for PG&E?

While serving on a local bank board, we attended FDIC training sessions where board members were taught how to govern and direct the institution’s operations while following state and federal laws. To be conscious at the same time of possible conflicts of interest and self dealings. They reminded us of two very important words, “due diligence,” and of the importance of not relying on the protection afforded by the “officers and directors liability“ policy all banks carry. The insurance company they said, did not cover stupidity or ignorance. If you did not read your directors packet before the meeting and you voted unprepared, you were not discharging your fiduciary obligations properly and could be held personally liable for the consequences. Legal counsel was always available to board members who may have had related questions.

I can only hope that new PG&E board members will be properly trained, regardless of how well politically connected they may be or how successful and qualified are they to run their own businesses or sports team. Hopefully the California Public Utilities Commission would also not fail again to supervise the utility closely.

Human lives and billions of dollars are at stake!

Oscar López-Guerra

San Mateo