Report this comment to a moderator

Board games

As an independent director and audit & risk chair myself I am amazed that anyone could consider 25 to 30 roles as the low end and 'typical' as being hundreds of directorships. Minimal attendance at board meetings demands perhaps 12 days per year, but with strategy, committee and stakeholder work this typically extends to more than 20 days per year, sometimes 30 for a senior independent. I would question whether it is practical to carry out the role properly with any lower level of engagement. How aware are you of the organisations real situation? How able to provide governance and assurance on behalf of investors and other stakeholders? How able to carry out your full professional responsibilities as required by regulators? How able to protect your personal reputation again legal liability challenges? Surely it is time for more independent directors to take their roles seriously and to devote the time and attention really required for a proper job to be done? How many such roles can then be handled (perhaps 5?) and how would the independent director be properly remunerated to carry out this critical role? UK, Canada and Australia are already making big strides in this direction, yet it seems the US is not yet ready to move away from the 'hundreds of directorships' model? - or is it?

26-Jul-2011

2:47 pm