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1 Getting Legends on Company Boards
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Transcript of boardoptionsbasketball
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Getting Legends on Company Boards
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Ideas to Action:
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MY MISSION:
• Get Board Perspective• a Board Strategy for your career.• a Board Resume• Distribution of that Board Resume• Managing YOUR Risks.• Compensation
I WANT TO BE ON A PUBLIC COMPANY BOARD
• WALL STREET JOURNAL, March, 2016 study of proxies of 500 largest U.S. companies filed on October, 2015.
• Market cap for most ranges betwetween 20-200 Billion.
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I WANT TO BE ON A PUBLIC COMPANY BOARD.
• 4300 independent Board members in S&P 500: pay climbed 50% between 2006-2014. (WSJ, “Directors’ Pay Ratchets Higher,” February 24, 2016, B1).
• Five Hours per week.• Regeneron Pharma $1.77 Million.• Berkshire Hathaway $2.700.00
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COMPENSATION
• MOST RECEIVED $229k-$295k.
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AGE
• Most Board Members are between 60-69.5
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2012 S&P500 Boards
• 5.5% African American Men.• 1.9% African American Women.
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Boards: Pawns or Potentates?
• Hire and Fire the CEO.• Check to insure that management is
spending money in stakeholder interests.• Audit & Oversight of CEO Power.• Advise and Counsel to the CEO.• Use your network to “open doors.”
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THE BOARD FOOD CHAIN
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Your Board Strategy: food chain
• Nonprofits-Small.• Nonprofits-Large.• Heritage Private Companies.• PE Dominated Private Companies.• Pre IPO• Small Cap Public• Mid Cap Public• Large Cap Public
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EXERCISE
Write down where you are TODAY on the board food chain and what is the most logical next step for you?
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Write Down Your Answers:
• Have you been CEO or had P&L Responsibility?
• What industries do you know well?• How can you contribute to full Board
discussions?
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Write Down Your Answers:
• REVIEW and approve strategy.• Make sure that the money is being spent
consistent with the interests of stakeholders.• Review CEOs performance; fire; hire.
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Write Down Your Answers:
• What’s your value to an Audit Committee?• What’s your value to a Compensation &
Succession Committee?• What’s your value to Nominating &
Governance Committee?
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Write Down Your Answers
• How comfortable are you with “nose in fingers out?”
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You are Ready to Fill Out Our Questionnaire.
• http://boardoptions.com/signup_bod_talent_bank.php
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For Inspiration Go To Our Board Talent Bank.
• http://boardoptions.com/bod.php
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DISTRIBUTION CHANNELS FOR YOUR BOARD RESUME.
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Board Distribution Channels
• Partners who know Partners in law firms—corporate not tax partners.
• Other Board members, check out investing business week (name of person)
• Tax Partners at CPA firms who can refer you to audit partners.
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Board Distribution Channels
• Recruiters. Check out Bluesteps.com• National Association of Corporate Directors• Boardoptions.com• Executive Leadership Council. www.elcinfo.com
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Your Bumper Sticker
• I only have time to serve on one Board. I want to make it a good one.
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Managing Risks.
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D&0 Liability Insurance
• Get your own insurance agent to give you a second opinion about its adequacy.
• Make sure you are covered for actions taken while you are a Board member even if the law suit takes place after you have left the Board.
• Who selects your attorney in the event of lawsuit?
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YOU MIGHT NOT NEED D&O INSURANCE.
• Board of Advisors vs. Board of Directors.
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Reputation Risks
• Term limits protect you. Ask for them.• Write your resignation letter and give it to
the President/Chairman and leave the date blank.
• Ask for dates of full Board meetings and committee meetings up to one year in advance.
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Next Steps
• Review the Board of Director Talent Bank in Boardoptions.com. Complete the “submit your credentials” information.
• Email to [email protected]
MORE RESOURCES
www.boardoptions.comwww.nacdonline.org
www.directorship.comwww.boardroominsider.com
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