How do you get on a corporate board? Keep these key factors in mind
Many of my clients are interested in gaining a seat on the board of a publicly traded company. I can see why. A board seat is prestigious and it pays well. Board work is interesting, challenging, and impactful. You’re meeting and working with a network of high-powered leaders. Serving on a board offers a way to stay involved after you retire. Sounds good!
But the reality is that most people aspiring to these roles will never succeed. For starters, there aren’t that many seats available. According to a recent survey by Spencer Stuart, turnover on corporate boards has slowed. Among S&P 500 companies, on average fewer than one board member is new in the past year.
Know which experiences help you land a board seat
Let’s consider the qualifications that make you an attractive candidate for a corporate board seat:
Most board members are former CEOs or senior financial professionals.
Leaders with experience in ESG, human resources, or marketing are not likely to be selected.
Prior board experience is important, which of course is a catch-22 for people seeking their first board seat.
International experience is a plus.
Most successful candidates are over age 50.
One significant change in the board world is the search for diverse candidates. Spencer Stuart found that two-thirds of new directors are female, LGBTQ+, and/or a member of an underrepresented minority group.
Expand your horizons to find more board opportunities
So what is an experienced senior business leader who wants a board role supposed to do? The answer is to broaden your scope. There are plenty of board opportunities beyond the publicly traded companies.
Privately held businesses and not-for-profit organizations often seek board members. These positions don’t typically pay as much or confer the same prestige. But they do provide opportunities to impact the success of the organizations and to network with others who are committed to the same goals as you.
I admire senior business leaders who are looking for ways to stay engaged and continue to contribute their expertise. The secret to success is to keep your mind open to the wide variety of opportunities out there.
If you’d like to learn more about those opportunities, contact me at ggolden@gailgoldenconsulting.com.
