In the news

In response to mounting pressure caused by the financial crisis, a growing number of executives are leaving the boards of struggling U.S. companies, reports The Wall Street Journal. These leaders are finding it increasingly tough to handle the heavy workload and frequent board meetings held by companies in crisis, the U.S. daily adds. A large number of the directors who have quit their jobs are Europeans unwilling to take on more international travel and time-zone spanning conference calls. Their departure may deprive U.S. companies of valuable outside perspectives, warn experts. According to George Davis, a consultant at Egon Zehnder International, Boston, executives are also worried about liabilities. “Joining a troubled company board midstream is a very difficult recruit,” he explains. In fact, several CEOs recently approached by Davis as potential board members are no longer interested in taking on a director role, he notes. Apparently these leaders were instructed to, “maintain extra focus on their own company during these turbulent times,” Davis recalls.