Retired CEOs: Are They a Fit for Your Board?

In the right situation, retired CEOs make outstanding board members. Not only do they tend to be more flexible and available than sitting executives, their wealth of knowledge, seasoning, and store of life's experiences can be very beneficial to boards facing critical, strategic decisions.

Typically, retired CEOs have lived through various stages of economic and business cycles and, as a result, can provide wise counsel especially to a newer CEO. In addition, retired executives are less encumbered by both the professional and the personal conflicts that sitting executives face. Given the outside influences that are affecting boards today, having directors who are free of other external responsibilities and loyalties is valuable.

That said, inviting a retired CEO to sit on your board may not fit every situation. For instance, if you are looking for someone to come aboard for a long tenure, age may prevent a retired executive from being able to serve for as long or as many terms as current C-level executives. Retired CEOs may also not be as well versed on technology trends, and may not be aware of new regulations that have been put in place since they were members of management. Finally, some retired CEOs may have a very defined set of opinions based on their personal experiences and might be less inclined to accept ideas from other board members, particularly younger board members.

Determining who should sit on your board is all about meeting your strategic needs as well as assuring a strong cultural fit. Given the right situation, retired CEOs are often excellent board directors. They bring a wealth of valuable experience...and have the time to dedicate to your board.