Want Shareholder Value? Look at Board Competency and Contribution
The legendary Jack Bogle, Founder, The Vanguard Group, stated in a recent interview that directors need to focus more on creating shareholder value. There are many factors that create good, better and best boards. Here are a few focus points that can help create sustained shareholder value:
•Strategic planning that leverages director experience and wisdom and is reviewed with assumptions vetted on a regular basis.
•An education program that is customized to fill in any gaps that each director may have.
•Director succession planning that looks at current and future needs of the company, recruits from that vantage point, and plans for emergencies and natural off boarding.
•Board evaluation that optimizes value of effort with a prioritized plan of action, uses reports and feedback from a
3rd party facilitator, and integrates findings into strategic leadership and planning.
Tracy E. Houston, M.A. president of Board Resource Services, is a board advisory consultant and executive coach headquartered in the Denver area. She conducts board evaluations and assists boards with a variety of issues that increase effectiveness. She can be reached at email@example.com or http://www.eboardmember.com
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