The Most Influential Are...

Making a list of the most influential individuals in any profession is never easy. Making a list of those who influence how boards operate is made even harder by the fact that so many groups hold sway over corporate governance: the directors themselves, shareholders and their advocates, regulators, board advisors, lawyers, and others. But the degree of difficulty has never stopped us from pursuing a worthy objective.

First, a word on our methodology. Starting at last year’s Directorship 100 event, we began accepting nominations for the list. Then, last year’s honorees were asked to nominate their peers for inclusion. A reader survey expanded the list of nominees to more than 400. From there, we sent out ballots to more than 100 individuals to vote in each category. An advisory panel of some 30 distinguished judges ranked the selections. Armed with these scores, our editorial team made the final cut.

In a nod to fierce objectivity, you will find some influentials on the list who occasionally make life less comfortable for board members. And this year, given the economic climate, we put more emphasis on those who influence the board’s strategic and economic agenda, such as regulators, CEOs, and the directors themselves.

The Chairman

Barney Frank, U.S. Congressman

The fallout from the financial crisis at banks and financial services firms is likely to have repercussions well into next year and beyond. In addition to reforms already enacted, Congress is sure to continue to engage in a spirited debate over what regulations are needed to keep the credit crisis from happening again. At the center of the regulatory response sits Barney Frank.

Congressman Frank (D-Mass.) has served in the House of Representatives since 1981, but in the past couple of years he has become a national figure in the financial world. When Democrats took control of Congress in the 2006 mid-term elections, the Massachusetts representative found himself chairman of the House Committee on Financial Services, the most powerful financial regulatory body in the legislature.

One of Frank’s first acts as chairman was to introduce “say on pay,” which would give shareholders an advisory vote on executive pay plans. The measure passed in the House and is awaiting action in the Senate. But it is his role in responding to the credit debacle that may define his political career. With a new administration likely to bring a changing of the guard at the Securities and Exchange Commission and the Treasury, Frank will be the one constant as reforms move forward. With the Democrats expected to increase their majority in the House during the coming elections, Frank’s influence on the financial services sector, and what is expected to be an increased regulatory environment, will only grow. Observers expect him to continue to be at the forefront on major reform legislation.

Frank is well known on Capitol Hill for his eloquence and trademark wit. He once noted: “The [concept that] the rising tide lifts all boats has always been a problem. If you think about that analogy, the rising tide is a very good idea if you have a boat,” he said in a recent interview. “But, if you are too poor to afford a boat, and you are standing tiptoe in the water, the rising tide goes up your nose.” As a young man, Frank helped out at a truck stop his father owned off the New Jersey turnpike where his populist economic views may have been sharpened.

While his progressive stance can sometimes make him a polarizing figure, he is not the kind of politician who engages in stall tactics or attempts to hurl impediments at the other side of the aisle. “The Congressman is extremely goal oriented. He’s all about getting the job done,” says Steve Grossman, former chairman of the Democratic National Committee. While Frank has a reputation for looking out for the consumer, Grossman doesn’t expect him to over-regulate. “He is for having a healthy banking system that is fair for everyone and doesn’t put inordinate burdens on those he regulates,” he says.

Directors have their fingers crossed that Grossman is right.

Ben Bernanke, Federal Reserve

Accused of getting a slow start on fixing the mortgage meltdown, Federal Reserve Chairman Ben Bernanke now gets high marks for his vigilance. The nation’s chief monetary policy maker and former longtime Princeton economics professor has been referred to by some as being “too academic.” Yet, together with Treasury Secretary Henry Paulson, he’ll need all the smarts he can muster to restore investor confidence and stabilize the credit markets. The ability of this pair to right the ship will have an enormous effect on whether the conversation around boardroom tables next year is a jovial one about how to promote growth or a sober debate over how much longer to keep the current CEO in place.