A board member who is successful is one who takes their role seriously and contributes in a meaningful way. They www.boardcontest.com/the-main-information-about-data-rooms/ must be able to make difficult decisions, make smart choices, and keep the bigger picture in mind while bringing an unique perspective based on their personal experience. A strong board of directors will help the company achieve its goals and mission by offering guidance and supervision. They will be driven to see the business flourish and will not be afraid to share their opinions.
While having lots of connections is important for businesses, they should also focus on recruiting people who are passionate about the cause and willing to dedicate their time. It is also essential to ensure that your board members have the right abilities. According to Institutional Shareholder Services, the boards of Enron, Kmart, and the troubled retail company Warnaco all had board members with a variety of financial competencies and expertise–including former Stanford deans who are also accounting professors and a well-known Asian financier and the former head of the U.S. government’s Commodity Futures Trading Commission–yet these credentials weren’t enough to prevent the businesses from going under.
Additionally, regular attendance at meetings is often considered an indicator of conscientious board members. But as Stanford GSB adjunct professor of corporate governance Nell Minow points out, this alone does not distinguish the boards that are good or bad. In fact attendance records for boards of GE (which was included on Fortune’s list of 2001’s most loved companies) and WorldCom have little in common.