As we enter 2013, here is what we are seeing.
We expect that board member turnover will accelerate in 2013 as;
* board service becomes more demanding and time consuming…Dodd Frank
*many board members mention, “director fatigue” deriving from the complexity of governance, number of meetings and demands of their committee assignments.
* “activist shareholders” seek and win seats making for a more contentious “topics” and tense meeting agendas.
*risk and litigation remain important factors in deciding whether to seek reelection.
*an increasing number of directors admit to failing to contribute and will be asked to “walk the plank” or step aside.
The qualities that boards of specific companies will seek in new directors, of course, is unique to each’s situation, circumstances, et al.
Boards will seek new directors, generally, who are committed to navigating governance ie beyond compliance.
“Checking the boxes” for risk mitigation is necessary but will not be as desired in board of director additions as corporate governance evolves to higher standards and expectations.
In our board recruiting practice, having conducted several hundred over the years, we have noticed a distinct shift toward specific functional expertise.
Boards prefer new directors with the following experience; customer engagement and technology, global acumen specifically toward emerging markets, and expertise in alliances and product extensions.
Moreover, Boards seek directors who have honed judgment in two important areas of concern…CEO evaluation and succession of leadership and a demonstrated flexibility at dealing with the unknown, i.e., crisis and opportunity.
As the year moves forward, we will keep you informed.
If your board requires director recruitment, we will be pleased to assist and advise.
The Koblentz Group is an executive search firm specializing in recruiting leadership and corporate directors for companies in the multiunit consumer and business service sectors. Over the past 30 years, its Partners have successfully conducted several hundred “C” level recruitments for emerging companies to the Global 100. The firm works worldwide.