Key Take-Aways | June 7, 2018

Key takeaways

The critical lessons from this session of the Board Leadership Forum are:

• To make sound decisions, boards should have diversity of thought, race, gender, skills and experiences; this allows for the board to capture new perspectives and ideas.

• The topic of diversity in the boardroom needs to move beyond something that is merely discussed and instead to a value and ideal that the board strives to achieve.

• The importance of the nominating/governance committee should not be overlooked. Serious consideration should be given to who should serve as the chair of the nominating/governance committee and whether this individual should be separate from the board chair.

• The roles of lead director and non-executive chair are critical in ensuring independence in the boardroom and in cultivating open dialogue among board members.

• There is much to be gained from thoughtful engagement between board members and shareholders, and the relationship established through that engagement can be critical when facing an activist.

• Shareholders are most interested in how boards are thinking through and approaching tough and strategic issues, rather than engaging with boards on prescriptive measures aligned to company operations or business decisions.

• It is essential that board chairs promote an “outside-in” perspective in the boardroom and that the information the board is receiving is not coming through a “management filter.

The meeting summary is available for download here.