A North American board governance guru, Dr. Richard LeBlanc is put on the hot seat to discuss key steps to creating a great board—and how investors can know how effective their board really is. LeBlanc and host TK Kerstetter talk about board leadership, board assessments, board recruitment and composition.
Kerstetter also quizzes LeBlanc about his book, Inside the Boardroom: How Boards Really Work and the Coming Revolution in Corporate Governance. The two discuss his predictions and whether a corporate governance revolution he projected in 2005 actually transpired.
Notable From LeBlanc
If you have regular assessments you won’t need term limits. However, while the assessment process has matured, implementation has not. Boards are too much like families, so it is difficult to remove directors.
Important to assess competencies needed for the future. Some competencies can become outdated or outmoded. Softer qualities, such as behavioral skills, are also crucial.
New skill sets required for investor relations. No longer good enough to have independent directors and chairs. Active shareholders pushing for proxy access.
TK: Did the revolution discussed in you last book happen?
Richard: Perhaps more evolution than revolution. Expectations for directors have increased dramatically. The real revolution in corporate governance will be shareholders having a say in nominating directors.
Both TK and Richard do a great job in this short but informative interview. The link below takes you t
o the site of Inside America’s Boardrooms.
Pre-order LeBlanc’s Next Book
Richard is also is about to release a new book entitled The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not for Profit Board Members, which is a great read for those who want to build a more effective board.
I know my chapter is excellent (modesty learned from Stephen Colbert). I can’t wait to read chapters by some of those I have long admired, such as Michael Useem, David F. Larcker, Holly J. Gregory, Nell Minow, Robert AG Monks, Jon Lukomnik, Charles M. Elson, Edward E. Lawler III, Mark Van Clieaf, Douglas Y. Park, Alice Korngold, and Adam J. Epstein… just to name a few. And there is much more from authors I have just been discovering in the last few years. I’ll discuss the book several times in future posts. For now, watch TK and Richard. Click on the photo below and you’ll be taken to the video.