A Seat on the Board: Do You Have What it Takes?
Whether you're choosing a new member of a board of directors or are a candidate yourself, following these guidelines will help to ensure the board includes people with the right skills and attributes for the job.
Executives who presume that boards are not that important—or who believe that adequate board members can be identified primarily on the basis of their friendship with the CEO or major shareholder—need an urgent reality check. For evidence, consider the many billions of dollars of shareholder value destroyed over the last decade alone by boards and management that failed the tests of vigilance, independence, engagement, qualifications and integrity.
In the face of this sorry performance, investors, public and private, increasingly expect management to be held accountable by boards of directors. And boards must be held accountable for doing so...