CTPartners (AMEX: CTP), a leading global retained executive search firm, reported five major forces impacting corporate Boards, which include:
- The power shift from the Board to the shareholder. If Boards don’t take the lead on big issues like CEO compensation, Board structure, director competence and succession planning, shareholders will.
- Social media activism. Boards need to engage with new technologies or become their victims.
- The 40-something board. The average age of directors, 62 years, will shift downward because Boards need fresh ideas and faster-paced, tech-savvy directors to energize the boardroom.
- The impact of culture – Corporate and Board. Boards have to identify cultural barriers – entrenched behavioral patterns and deeply-held beliefs that are bogging companies down and inhibiting change – because corporate culture can sink or save a company.
- The power of talent and the rise of the CHRO on Boards. HR execs are upping their game, with many companies hiring Chief Human Resources Officers with high-profile business experience and skills.
Next they’ll recognize that “human capital,” is based in the skills and knowledge not only of corporate managers but of boards, employees and shareowners alike.