Demand for women and minorities on boards has been skyrocketing. My colleague at Executive Advisory and the University of Chicago, Josie Brown, has been following and reporting on this trend for the past year and offers these insights.
A typical approach to the selection process for board appointment is the grid matrix. The grid functions as an easy way to identify the different areas of expertise and experience that the directors on a board lack now or will lack in the future. The grid matrix is formatted with the board’s desired backgrounds listed […]
As the economic and social significance of board diversity becomes more widely recognized, some U.S. state legislatures have taken initiatives to address the rising concerns for demographic variety in the corporate boardroom. Listed below is the run-down of each state that has introduced and/or passed bills regarding diversity. Laws Related to Board Diversity Legislation California […]
Director compensation packages generally include an annual retainer, per meeting fees and annual stock options or stock grants. Annual director remuneration has steadily risen due to the complexity of board governance and increased regulation. Usually, a figure equivalent to 20-25% of the retainer is used to determine the amount of stock options paid to a […]
An important consideration when joining a board is Director & Officer liability insurance, commonly known as D&O insurance. Public companies purchase D&O insurance to protect directors and officers from the chance of getting sued by stockholders, vendors, competitors and other parties. These lawsuits can arise if directors or officers are accused of violating their duties […]