“In the wake of the financial crisis, and now the unfolding era of the Dodd-Frank Act, the call for greater transparency around boards is and has been loud and clear,” said Peter Gleason, setting the tone for a discussion between boardroom experts on best practices for building the best board possible.
Left to right: Steven Root, Andrew J. McKenna, Susan S. Hart and Peter Gleason
With Dodd-Frank requiring that proxy statements detail a director’s qualifications, boards have a chance to more thoroughly evaluate both future and previous appointments. “On a few of them, the qualifications are remarkably thin,” said Steven Root. “So for them, this is really a wake-up call.”
“It’s all about strategy,” said Susan S. Hart. “Unless a board starts with a strategy, you won’t be able to put the pieces together for the right directors.”
Andrew J. McKenna emphasized the ongoing nature of board building. “It’s not just, how do you build a board from the beginning? It’s how do you maintain the board, how do you make sure the skills are properly used and are they effective?”
Hart noted that many boards are now seeking new members with digital and social media credentials, as well as experience in international relations. Boards today, he said, also have to consider a wider range of candidates while the pool of available, capable candidates appears to be shrinking.
Moderator:
Peter Gleason, managing director, CFO, NACD
Panelists:
Susan S. Hart, co-leader Global Retail Practice, Spencer Stuart
Andrew J. McKenna, non-executive chairman, McDonald’s, director, Aon Corp., Skyline Corp.
Steven Root, managing director, Steven Hall & Partners