Boardroom INSIDER for… APRIL
BOOTING PEOPLE OUT OF THE CORPORATE BOARDROOM?
The need for more diverse, current, fresher talent on the world’s corporate boards is one of today’s hottest governance topics. But the lead article in the April issue of online monthly Boardroom INSIDER notes that no progress will happen until we do a better job at turnover for current members.
“Director tenure, evaluation, and overboarding show how weak our standards for board performance really are,” writes BI publisher and board advisor Ralph Ward. Average U.S. board tenure is now almost nine years, and guidelines from proxy advisors and big funds, such as State Street, still accept up to four board seats as a norm – “that’s still a lot of boards,” notes Ward
Worse, board self-evaluation of members, now almost universal, still rarely leads to weeding out underperformers. A 2020 PWC survey found almost half of U.S. board members felt at least one of their fellow directors should be replaced. “If board evaluation was really working, how could this be?”
Ward notes that the problem of overextended, long-tenured, inadequate directors not only harms corporate governance, but is a major roadblock in increasing board diversity. “We can’t get fresh talents into our boardrooms until we do a better job of easing incumbents out.”
Articles in the April issue include:
- Returning to the boardroom? Post-COVID questions to ask first.
- How has the past year changed the way we pay board members?
- New BI video series – Making virtual board meetings succeed.
- Q&A: Retiring as CEO, but staying as board chair – can it work?
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Ralph Ward’s latest book, Board Seeker: Your Guidebook and Career Map into the Corporate Boardroom (Business Expert Press) gathers 20 years’ experience in board counseling and research to give “board wannabes” the steps and insights needed to craft a successful board search campaign.
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