Corporate governance is becomingly increasingly important and one little known fact places Atlanta near the epicenter of this continually evolving debate. This information is not easy to uncover, as there are no lists or Google searches that will reveal just how much influence some Atlantans are wielding.
Simply, Atlanta is very prominent in governance because we are the home of a large number of corporate directors of high profile public companies, many of which are not based here. Some, of course, also serve as directors of Atlanta companies, but increasingly more are serving well-known companies based elsewhere. Studying proxies does not really uncover the depth and breadth of the number of Atlantans among those serving on the 13,000 or so public corporate boards.
While advising boards and recruiting for corporate directors over the past thirty years, we discovered just how many “influencers” are here. And, frankly, we are continuing to add Atlantans to our list.
So, how did we become a leader in corporate directors?
It starts and ends with talented executives that boards seek for their “top of house” experience and perspective. Being a corporate director is not as simple as it once was. It is demanding… about 250 hours per year per board. To fully contribute and carryout the necessary duties requires a mix of experience and judgment honed over many years. That mix of experience, and commitment to serve, is certainly alive and well here in our city. Yet it goes beyond a willingness to serve that continues to foster Atlanta’s leadership position.
Here’s how all the necessary ingredients came together.
First, we benefitted as notable companies relocated here, such as UPS, NCR, and Newell Rubbermaid, for example, and coupled with the growth and importance of “native” companies such as Home Depot, Delta Airlines, Equifax, etc., Atlanta has added world-class executive talent and created an unusually deep bench as a source for directorships.
Secondly, the growth of professional service firms (principally law firms, and national and regional accounting practices, as examples) to support our expanding corporate headquarters and economy has developed alongside these corporations, providing an additional group of professionals with the sophistication to be considered for election to boards. Even with the sale or consolidation of corporate headquarters (e.g. Georgia Pacific, BellSouth, Internet Security Systems, Radiant, Russell), we are well positioned, represented, and are “governing” well beyond the corporate boardrooms and CEO leadership in Atlanta.
To make the point, and to demonstrate our influence outside of this city, Atlantans are directors of such notables as 3M, Barnes Corporation, New York Life, Harley Davidson, True Value, ConocoPhillips, Brown Shoe, General Motors, Lennar, D&B, Regions Financial, Las Vegas Sands, Johnson & Johnson, among many, many others. Clearly, while we could cite more, the breadth and depth of our representation is noteworthy.
In sum, Atlantans are very much at the forefront of board service, and naturally, the more Atlantans are elected to serve on boards, the more opportunities they will have to be asked to serve by other companies.
This is an important step in our city’s “brand” and commercial development, as it speaks to our level of knowledge and contributions in this critical area. Quality of talent attracts similar quality. We have benefitted from the foresight of our companies, and our burgeoning reputation, to cultivate and develop these sophisticated global leaders.
Currently, boards are on the firing line with the evolution of shareholder representation, effectively “governing the enterprise” while also addressing the increasing complexities of Dodd-Frank and other compliance matters. All the right “assets” are here. So even though corporate directors shy away from the media limelight, don’t be surprised when you learn of a well-known company whose shareholders are represented by one of your neighbors… increasingly, so it seems, everyday.
Click here to read the full “Viewpoint” article, as published on The Atlanta Business Chronicle’s website.
About us…The Koblentz Group is a global executive and board of director search firm specializing in recruiting senior leaders and corporate directors. Over the past 30 years, its Partners have successfully conducted several hundred “sensitive matter” board recruitments for public companies, investor owned and private concerns. The Firm serves its clients worldwide.