May 23, 2016

Boards Update Onboarding Methods

Directors with tech expertise who have joined boards in the past three years have several things in common: Many have worked for Facebook, Google or other Silicon Valley companies; they are at least a decade younger than their fellow directors; and they have never served on a public company board before. Thus, onboarding and support for such directors in the first six to 12 months on the board — essentially the first four board meetings — is critical. For some boards, this may mean updating the company’s current onboarding materials and appointing a director to keep in contact with the new board member and provide ongoing feedback. “So many boards haven’t brought on a new director in years,” says Jennifer Christensen, managing partner with JWC Partners. “They haven’t had to think about director orientation. ”Data published in May by search firm Heidrick & Struggles shows that board turnover among Fortune 500 companies increased to 8.5% in 2015, from 6.8% in 2014, the highest rate since 2009. Of the 399 directors who joined Fortune 500 company boards in 2015, 14% brought technology expertise, Heidrick’s research shows. As Agenda has reported, directors surveyed in the first quarter of 2016 say that the most sought-after skills among new directors are cyber security and technology. As more boards seek out directors with such experience, nominating and governance committees and corporate secretaries will be charged with onboarding tech directors, many of whom are younger and inexperienced in governance.

Read Full Post