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19 Jun How to Remove Board Members

How to Remove Board Members There are several reasons why CEO’s would like to shed a board member or two at times.  There are 3 primary reasons: The person is disruptive to the effectiveness of the board The person has served to long on the board The person no longer brings the value needed to the board How you got in this situation is somewhat irrelevant and should be looked at as an opportunity to fix it once and for all. These issues can be avoided through the use of your board by-laws.  If you don’t have by-laws then putting some in place is imperative to...

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17 Jun 5 Things to Know When Selecting Board Members

5 Things to Know When Selecting Board Members [caption id="attachment_274" align="alignright" width="300"] 5 Things to Know When Selecting Board Members[/caption] Selecting board members either for the first time or to replace/add to your board is an exciting time.  This is mostly because of the unknown which also makes it a really challenging task to do.  The board is really the governing body for your company and the other stakeholders.  Stakeholders include ownership of course but also: Employees Customers Suppliers Community Government Done correctly assembling a board that has it’s collective focus on building strategic value for the company while always trying to satisfy the stakeholders is a challenge. The...

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13 Jun 7 Questions Every Potential and Current Board Member Should Ask:

7 Questions Every Potential and Current Board Member Should Ask: [caption id="attachment_270" align="alignright" width="300"] Questions Every Potential and Current Board Member Should Ask[/caption] Below are seven questions that you should ask yourself prior to joining a new board or even to ask yourself if you are currently on a board.  The more positive answers the better.  If you don’t know the answers then get the answers. What is the true financial condition of the company?  Not just the P&L and Balance Sheet.  You should also understand cash flow, inventory, gross margins, equipment and depreciation, etc. Is there a published Corporate Strategy?  It may not...

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05 Jun Am I Qualified to Serve on a Board?

Am I qualified to serve on a Board? Being qualified to serve on a Board of Directors or Board of Advisors is a common question along with “How can I get on a Board?”  This is a very subjective topic but there are several characteristics that I see in people selected to serve on boards.  First off it is easier to qualify to serve on a Board of Advisors because you are only advising and have no legal responsibilities plus BOA’s are usually looking for a specific experience rather than multiple ones for a BOD. Keys to being selected for a Board are: Senior...

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04 Jun The Benefits of Serving on a Board

The Benefits of serving on a Board! The business world is very utilitarian…What is the Benefit!  Always when a company makes an investment, produces a new product, hires a new employee, what is the benefit.  The same is true when a company adds a new member to their board of directors.  The benefit might be new market knowledge in doing business internationally, or experience in managing a company 2x or 3x the size of the boards company, etc. If you have been approached or are considering joining a board you need to ask yourself what are the real benefits joining this organization.  One...

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29 May Board Diversity From a Women’s Perspective Part 3

Board Diversity from a women’s perspective part 3  I only serve on boards with diversity.  It matters.  I appreciate racial diversity, but I also appreciate gender diversity, industry diversity, functional diversity and age diversity.  We all bring a different voice.  I have attached a short piece I wrote that was published in Directors & Boards magazine from a year or two ago which speaks to age diversity."  On advice, I would encourage female board members who are new to boards to make sure to reach out and connect with one fellow board member between each meeting.  That doubles the number of touch points...

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22 May Board Diversity From a Women’s Perspective Part 2

Board Diversity From a Women’s Perspective Part 2 1.      What have you seen as the benefits to serving on a board that has diversity?  [caption id="attachment_251" align="alignright" width="300"] What have you seen as the benefits to serving on a board that has diversity?[/caption] a.       Quality of the decision improves – board members should be supportive of the CEO and at times without diversity, it is single minded.  I am referring to group think, the preverbal rubber stamp with a homogeneous board. Board diversity provides greater thoughtfulness on different aspects of direction brought to the board. In may come in the form of a question, asking...

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21 May Board Diversity From a Women’s Perspective

Board Diversity From a Women’s Perspective. Recently I hosted a table of Women CEO’s at a NACD event titled “The Board Game-How Smart Women Become Corporate Directors”.  The speaker was Betsy Berkhemer-Credaire who had written a book with the same title as the presentation. Betsy the speaker did a nice job explaining how she compiled her stories of a group of women she highlighted in her book that is meant to both inspire women to stand up and be counted in the boardroom along with some valuable hints on how to get invited to the boardroom to begin with.  Below is a...

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19 May Seeking New Board Members Is Important

Seeking New Board Members Is Important Seeking fresh perspectives and added experience from new board members: [caption id="attachment_243" align="alignright" width="300"] Perspective[/caption] Why should a company actively seek new board members?  A fairly simple answer  is that markets, economies and the world are changing at an ever increasing pace.  This increase in the speed of change means that a company must be prepared to change rapidly if it is to continue to succeed. The most common reason a new board member is needed is the loss of a current member.  This created the opportunity to upgrade the board seat and/or fill a gap in the...

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16 May How Much Does a Board Member Make?

  How much does a board member make?  [caption id="attachment_239" align="alignright" width="300"] Board of Directors Compensation:[/caption]   Board compensation plans vary greatly.  From simple to complex and from cash only to cash, equity, long term comp, benefits and perks.   There is no absolute rule on compensation but generally the larger the company the larger the compensation costs.  From a company standpoint, the real costs not only include director compensation but additional costs based on the number of meetings, travel expenses for out of town directors, directors insurance, outside board resources, etc.  These costs can easily amount to an additional 50% of what a company pays...

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