Modern Directors Still Anachronistic

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3 Responses

  1. Shag from Brookline says:

    Should there be a bullet point regarding directors’ compensation, including how many boards directors sit on and are compensated for?

    This bullet point:

    “* directors on average spend 28 days’ worth of work annually, but think they should ideally spend 38 to do the job well.”

    might relate to compensation. But consider a director serving on 4 boards and the hours actually spent or that should be spent in that capacity and wonder how they can handle a full-time job, especially as a CEO of a publlcly-traded corporation.

  2. A.J. Sutter says:

    Shag’s comment prompts me to wonder: is there any trend to include in a company’s by-laws a limit on the number of outside directorships the various officers may hold?

  3. Shag from Brookline says:

    I should add that based upon my observations in recent years, less and less CEOs of publicly traded corporations are serving on other boards. When I receive a proxy statement, I check on the number of other boards a candidate for director serves on and make a mental calculation of how that might interfere with that candidate’s day job. I acknowledge that there may be “professional” directors who may not have full-time day jobs. But even with the “professional” director, there may be concern that with multiple directorships, such a “professional” may rely compensation-wise upon them and his/her alleged independence may be questioned. And of course with multiple directorships, there may surface conflicts of interest.