According to Bill Baxley and Jeff Stein at King & Spalding, directors have less opportunities to draw on significant resources and contribute to corporate strategy. CEOs suggest that participating in corporate strategy is the second most important activity that their boards undertake, yet CEOs give directors only the 11th highest grade for their performance on this realm.
The Lead Director Network, a group of lead directors, presiding directors, and non-executive chairmen from many of America’s leading companies created by King & Spalding and Tapestry Networks, met on November 3, 2008, to discuss the role of the board in corporate strategy, according to The Harvard Law School Corporate Governance Blog.
King & Spalding and Tapestry Networks published the ViewPoints report, presenting highlights of the subject.
Boards have become more involved in corporate strategy in recent years. The Lead Director Network also found that boards being more proactive—especially in the aftermath of corporate scandals—the rise of activist investors, and directors’ own efforts to become more engaged in corporate strategy, even when companies are in constant flux and facing uncertain economic times.