Risks, Challenges and Benefits from Board Membership

Abstract

Concerned about increasing legal problems and faced with unprecedented time demands, many directors are quietly stepping down from board memberships. Prominent executives confide that when their current terms expire they will not stand for re-election to the boards of directors they now serve. An increasing number of cognisant and well-known executives are turning away all invitations to serve as board members. This has a heavy toll on a number of troubled companies, which need strong directors. Though unthinkable some ten or even five years ago, some companies are forced to employ professional recruiters to search for top executives willing to do board duty. Even the headhunters are having a tough time.