Board Consulting

With shareholders demanding a greater say on governance issues, U.S. boards need to boost their transparency, writes George L. Davis, global co-leader of the Board Consulting Practice of Egon Zehnder International. Directors also need to stop viewing shareholders as dangerous activists to be avoided and start accepting them as partners to be engaged, he adds. To enhance their transparency, Davis urges boards to see new governance regulations as an opportunity to explain their decisions clearly. He also advises boards to anticipate and prepare for concerns and to regularly ensure that their members possess a balanced mix of skills.

While there has been a great deal of talk, for a long time, about the importance of board assessments, best practice has been slow to translate into actual practice. From what we see and hear, however, this is beginning to change.