Boardroom INSIDER for… AUGUST

***Ralph Ward will host the webinar “Boardroom Best Practices for the Real World” August 26 – Register for this 90-minute interactive program through Lorman today!***

 

HAS “GOOD BOARDROOM CHEMISTRY” BECOME A BAD IDEA?

Around the world, discussion on corporate boards usually makes the same points, foremost among them — the board needs “good boardroom chemistry” to succeed.  This suggests a friendly team of like-minded confederates is required to govern our corporations.  But an article in the August issue of governance monthly Boardroom INSIDER suggests this take on boards has grown naïve and outdated.

Publisher and governance commentator Ralph Ward writes that recent proxy campaigns (such as at Microsoft, American Apparel and Darden Restaurants) increasingly open the boardroom doors to board candidates “suggested” by outside activists.  More boards worldwide must now “make room for new members through shotgun weddings,” writes Ward.

Further, the traditional boardroom boys’ club is being shaken up by increased calls (and in much of Europe, legal demands) for greater gender and racial diversity.  The result is decline of the old self-replicating boardroom for one that is more fractious, diverse, and dynamic.  Yet Ward writes that even activist investors still tend to grade boards on how good their old-fashioned “chemistry” is, when “there is a new blended family at the board table. The next challenge is redefining the chemistry they’ll need to excel.”

Also in the August Boardroom INSIDER:

pinkThe 6 ways online board portals have evolved.
pinkReal world tips for launching a new board.
pinkFinding talent for new boards.
pinkQ&A: Are your directors too distracted?