How Time Consuming Is It
To Be A Canadian Director?
Special Report 2014
In Partnership with Patrick O’Callaghan and Associates
Counting the Hours: How Time Consuming Is It
To Be A Canadian Director?
A
fter more than twenty years of studying Canadian board practices,
including fourteen years of in-depth surveys on focused governance
issues 1, one of our key observations is how significantly the roles of the
board, committees, board and committee chairs, and the individual
director have changed:
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* %*ƫ %.!0+.ċƫ*ƫ0$!ƫ/,.%*#ƫ+"ƫĂĀāąČƫ3!ƫ/1.2!5! ƫāĂĀƫ %.!0+./ƫ.+//ƫ* ƫ+10ƫ
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* ƫ+),.%/+*ƫ%*ƫ"101.!ƫ5!./ċ
!ƫ,,.+$! ƫ0$%/ƫ/1.2!5ƫ".+)ƫƫ*..+3Čƫ10ƫ !!,Čƫ,!./,!0%2!ċƫ$!ƫ,.+!//ƫ3/ƫ
+),.!$!*/%2!Čƫ3%0$ƫ)+/0ƫ+"ƫ0$!ƫāĂĀƫ %.!0+./ƫ,.0%%,0%*#ƫ%*ƫ,!./+*(ƫ%*0!.2%!3/ċƫ
!ƫ/'! ƫ0$!)ƫ0+ƫ!4)%*!ƫ((ƫ+"ƫ0$!%.ƫ+. ƫ0%2%0%!/ƫ* ƫ0.5ƫ0+ƫ!ƫ/ƫ1.0!ƫ/ƫ
,+//%(!ƫ/ƫ0$!5ƫ!/0%)0! ƫ$+3ƫ0$!5ƫ !2+0! ƫ0$!%.ƫ0%)!ƫ0+ƫ0$!%.ƫ+. ƫ.+(!/ċƫ
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0$!ƫ$+1./ċƫ0ƫ3/ƫ(!.ƫ0$0Čƫ3$%(!ƫ %.!0+./ƫė'*!3Ęƫ0$0ƫ0$!5ƫ3!.!ƫ,100%*#ƫ%*ƫ)+.!ƫ0%)!ƫ
"+.ƫ((ƫ+"ƫ0$!%.ƫ+. /Čƫ0$!5ƫ$ ƫ*+0ƫ01((5ƫ0((%! ƫ0$!ƫ*1)!.ƫ+"ƫ$+1./Čƫ*+.ƫ%*(1 ! ƫ0$!ƫ
.*#!ƫ+"ƫ0%2%0%!/ƫ0$0ƫ0$!5ƫ!*##!ƫ%*ƫ/ƫƫ %.!0+./ċƫ$!ƫ+10+)!ƫ3/ƫ()+/0ƫ(35/ƫ
$%#$!.ƫ0$*ƫ0$!5ƫ$ ƫ%)#%*! ċ
Average Time a Director Spends per Board in Canada
WEEK
304
Hours
4
38
Days
7.6
WEEK 2
4
WEEK 1
Weeks
May
5
1.9
June
une
July
6
Augu
ugust
Months
“This was an eye opener. Yes it is a lot of work and it has become more and more
noticeable, but I had not actually counted hours. Once calculated, it was a lot
more time than I realized, much more than I would have estimated.”
1
Corporate Governance and Director Compensation in Canada, Patrick O’Callaghan and Associates and Korn Ferry, Annual Reviews from 1993 to 2014
3
The 2013-2014 NACD Public Company Governance Survey data is from 1,019 survey responses.
4
Assumes 8 hour day
5
Assumes 40 hour week and 5 working days per week
6
Assumes 4 weeks month
ā
51%
25%
YES
+"ƫ %.!0+./ƫ/00! ƫ0$0ƫ0$!%.ƫ
+. /ƫ$ ƫ %/1//! ƫ0$!ƫ
!)* /ƫ+*ƫ %.!0+./Ěƫ0%)!Č
+"ƫ0$+/!ƫ %.!0+./ƫ$/ƫ/% ƫ
0$!ƫ%//1!ƫ.!#1(.(5ƫ.%/!/ƫ
* ƫ.!)%*/ƫƫ+*!.*ċƫ
NO
Directors of the Larger Companies Put in the Longest Hours.
2.4
9.7
2.1
48.5
8.4
41.8
Months
Weeks
Days
Hours
1.4
5.4
1.3
5.3
26.9
27.1
215
217
335
388
* !.ƫĆĀĀ
ĆĀĀƫ0+ƫā
āƫ0+ƫĆ
2!.ƫĆ
388
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.+)ƫ+1.ƫ %/1//%+*/ƫ3%0$ƫ %.!0+./Čƫ3!ƫ!(%!2!ƫ0$0ƫ0$!ƫ+..!(0%+*ƫ!03!!*ƫ+),*5ƫ
/%6!ƫ* ƫ %.!0+.ƫ0%)!ƫ.!(0!/ƫ0+ƫƫ*1)!.ƫ+"ƫ"0+./ċƫ/ƫ+),*%!/ƫ#.+3Čƫ0$!%.ƫ+,!.0%+*/ƫ
!+)!ƫ)+.!ƫ+),(!4ƫ* ƫ0$!ƫ#!+#.,$%ƫ.!$ƫ!+)!/ƫ)+.!ƫ#(+(ċƫ$%/ƫ#!*!.((5ƫ
.!/1(0/ƫ%*ƫ)+.!ƫ!),(+5!!/Čƫ)+.!ƫ+),(!4ƫ+,!.0%+*/Čƫ* ƫ)+.!ƫ.!#1(0+.5ƫ%//1!/ċƫ
$!/!ƫ((ƫ0.*/(0!ƫ%*0+ƫ*ƫ%*.!/! ƫ*1)!.ƫ+"ƫ %.!0+./ƫ3%0$ƫƫ.+ !.ƫ.*#!ƫ+"ƫ
!4,!.%!*!/Čƫ)+.!ƫ+))%00!!/Čƫ)+.!ƫ,.!,.0%+*ƫ0%)!ƫ"+.ƫ+. ƫ* ƫ+))%00!!ƫ
)!!0%*#/Čƫ* ƫ)+.!ƫ0.2!(ƫ* ƫ %.!0+.ƫ! 10%+*ƫ"+.ƫ %.!0+./ċƫ
Ă
Time Demands are Greater if you are a Board or Committee Chair
41.5 days
8.3 weeks
2 months
39.8 days
8 weeks
2 months
32.3 days
6.5 weeks
1.6 months
259
319
332
Committee Member
Committee Chair
Board Chair
hours
hours
hours
ĵƫ 1.2!5ƫ.0%%,*0/ƫ5ƫ+(!ƫ+*ƫ0$!ƫ+. ƫ* ƫ2!.#!ƫ+1./ƫ"+.ƫ.%).5ƫ+.
0ƫ%/ƫ*+0ƫ/1.,.%/%*#ƫ0+ƫ/!!ƫ0$0ƫ0$!ƫ+. ƫ$%.ƫ/,!* /ƫ*!.(5ƫĈăƫ$+1./ƫ+.ƫĊƫ)+.!ƫ 5/ƫ
,!.ƫ5!.ƫ0$*ƫƫ %.!0+.ƫ3%0$ƫ*+ƫ(! !./$%,ƫ.!/,+*/%%(%0%!/ċƫ$!ƫ+. ƫ$%.ƫ$/ƫ*ƫ
!*+.)+1/ƫ%),0ƫ+*ƫ0$!ƫ!û!0%2!*!//ƫ+"ƫƫ+. ċƫ
$0ƫ3/ƫ.!2!(%*#ƫ3/ƫ0$0ƫ0$!ƫ0%)!ƫ !)* ƫ+*ƫ+))%00!!ƫ$%./ƫ3/ƫ.1/$%*#ƫ
1,ƫ#%*/0ƫ0$+/!ƫ+"ƫ+. ƫ$%./ċƫ(0$+1#$ƫ3!ƫ!(%!2!ƫ0$0ƫ0$%/ƫ%/ƫƫ.!(0%2!(5ƫ*!3ƫ
!2!(+,)!*0ƫ+2!.ƫ0$!ƫ,/0ƫü2!ƫ5!./Čƫ%0ƫ%/ƫ+*/%/0!*0ƫ3%0$ƫ0$!ƫ %.!0+./Ěƫ,!./,!0%2!/ƫ
1.%*#ƫ+1.ƫ%*0!.2%!3/ƫ* ƫ3%0$ƫ+1.ƫ+3*ƫ%*0!.0%+*ƫ3%0$ƫ+. /ƫ.+//ƫ* ċƫ$!ƫ
!)* ƫ+*ƫ+))%00!!ƫ$%./ƫ%/ƫ(/+ƫ,,.!*0ƫ%*ƫ0$0ƫ0$!5ƫ.!ƫ/!!%*#ƫ0$!ƫ)+/0ƫ%*.!/!ƫ
%*ƫ0%)!ƫ+))%0)!*0čƫćĊŌƫ+"ƫ+))%00!!ƫ$%./ƫ.!,+.0! ƫ0$0ƫ0$!%.ƫ0%)!ƫ+))%0)!*0ƫ%/ƫ
0.!* %*#ƫ1,3. Čƫ+),.! ƫ0+ƫĆăŌƫ+"ƫ+. ƫ$%./ƫ* ƫăĈŌƫ+"ƫ %.!0+./ƫ3%0$ƫ*+ƫ
(! !./$%,ƫ.+(!ċ
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)!!0%*#Čƫ* ƫ)*5ƫ%*2%0!ƫ0$!ƫ3$+(!ƫ+. ƫ0+ƫ00!* ƫ((ƫ+))%00!!ƫ)!!0%*#/ċƫ$+/!ƫ
+),*%!/ƫ"+((+3%*#ƫ0$%/ƫ,.0%!ƫ+"0!*ƫ0!((ƫ1/ƫ0$0ƫ%0ƫ$!(,/ƫ %.!0+./ƫ,.!,.!ƫ"+.ƫ0$!ƫ
+. ƫ %**!.ƫ0$0ƫ%/ƫ$!( ƫ0$!ƫ!2!*%*#ƫ+"ƫ0$!ƫ+))%00!!ƫ)!!0%*#/Čƫ* ƫ)'!/ƫ0$!/!ƫ
%**!./ƫ* ƫ0$!ƫ/1/!-1!*0ƫ+. ƫ)!!0%*#ƫ)1$ƫ)+.!ƫ,.+ 10%2!ċƫ!-1!*0%(ƫ
+))%00!!ƫ)!!0%*#/ƫ$!(,ƫ/0.!)(%*!ƫ0$!ƫ+. ƫ)!!0%*#ƫ+*ƫ0$!ƫ"+((+3%*#ƫ 5Čƫ/ƫ
+))%00!!ƫ.!,+.0/ƫ*ƫ!ƫ)+.!ƫ+*%/!ƫ* ƫ((ƫ %.!0+./ƫ$2!ƫƫ(!.ƫ1* !./0* %*#ƫ
+"ƫ0$!ƫ%//1!/ƫ0$0ƫ3!.!ƫ %/1//! ƫ* ƫ0$!ƫ.!+))!* 0%+*/ƫ!%*#ƫ) !ċƫ
ă
+/0ƫ %.!0+./ƫ.!ƫ-1%0!ƫ,.#)0%ƫ+10ƫ0$!ƫ%*.!/! ƫ3+.'(+ Ďƫ0$!5ƫ*+0!ƫ0$0ƫ
0+ 5Ě/ƫ %.!0+.ƫ$/ƫƫ2!.5ƫ %û!.!*0ƫ.+(!ƫ".+)ƫ0$0ƫ+"ƫ0!*ƫ+.ƫü"0!!*ƫ5!./ƫ#+ƫ* ƫ
0$0ƫ+. ƫ+),!*/0%+*ƫ$/ƫ.%/!*ƫ%*ƫ/0!,ƫ3%0$ƫ0$!ƫ3+.'(+ ċ
“I think there has been a big shift over the past 10 years. There are very high expectations
for directors. Directors need to add value and at the same time provide effective oversight.
It’s a tough role to play.”
Canada vs United States
304
236
38
29.5
Hours
Hours
Days 7
Days 7
VS
WEEK
7.6
WEEK
5.9
WEEK 2
WEEK 1
Weeks
May
WEEK 2
WEEK 1
8
Weeks
1.9
June
une
July
Jul
Aug
ugust
9
Average
Canadian director
Months
Average
U.S. director 10
May
8
1.5
June
une
July
Aug 9
August
Months
* %*ƫ+. /ƫ+"0!*ƫ(++'ƫ/+10$ƫ+"ƫ0$!ƫ+. !.ƫ"+.ƫƫ+),.%/+*ċƫ$!ƫ0%+*(ƫ
//+%0%+*ƫ+"ƫ+.,+.0!ƫ%.!0+./ƫāāƫ.!,+.0! ƫ*ƫ2!.#!ƫ**1(ƫ0%)!ƫ+))%0)!*0ƫ
+"ƫĂăćƫ$+1./ƫ"+.ƫƫċċƫ %.!0+.ƫ%*ƫĂĀāăċƫ$!ƫƫ/1.2!5! ƫāČĀāĊƫ %.!0+./Čƫƫ)1$ƫ
(.#!.ƫ/),(!ƫ#.+1,Čƫ/+ƫƫ,.!%/!ƫ+),.%/+*ƫ0+ƫ+1.ƫ* %*ƫ+$+.0ƫ%/ƫ %þ1(0ċƫ
!2!.0$!(!//Čƫ0$!.!ƫ%/ƫƫ/0.+*#ƫ%* %0%+*ƫ0$0ƫ* %*ƫ %.!0+./ƫ/,!* ƫ.+1#$(5ƫ
ĉƫ 5/ƫ)+.!ƫ0$*ƫ0$!%.ƫċċƫ+1*0!.,.0/ƫ0ƫ0$!%.ƫ %.!0+.ƫ.!/,+*/%%(%0%!/ċƫ*!ƫ+"ƫ0$!ƫ
%.!0+./ƫ3!ƫ/1.2!5! ƫ,.+2% ! ƫ$!.ƫ,!./,!0%2!čƫ
“U.S. boards are less concerned with government controls and regulation. They are
much more customer driven. Canadian boards are very concerned about social license,
reputation and community.”
“ I think U.S. boards achieve some time efficiency by combining the roles of board
chair and CEO.”
ą
7
Assumes 8 hour day
8
Assumes 40 hour week and 5 working days per week
9
Assumes 4 weeks per month
10
2013-2014 NACD Public Compay Governance Survey, published by the National Association of Corporate Directors.
11
2013-2014 NACD Public Company Governance Survey, published by the National Association of Corporate Directors.
Time Demands Makes filling Director, Board Chair and
Committee Chair Roles More Challenging
*(5ƫăĂŌƫ+"ƫ %.!0+./ƫ0+( ƫ1/ƫ0$0ƫ0$!5ƫ3!.!ƫ#%2!*ƫ*ƫ!/0%)0!ƫ+"ƫ0$!ƫ0%)!ƫ+))%0)!*0ƫ
3$!*ƫ0$!5ƫ&+%*! ƫ0$!%.ƫ+. /Čƫ* ƫ+"ƫ0$%/ƫ#.+1,ČƫĆćŌƫ"+1* ƫ0$!ƫ!/0%)0!ƫ1.0!ƫ* ƫ
ąąŌƫ"+1* ƫ%0ƫ0++ƫ(+3ċƫ+3!2!.Čƫ0$!5ƫ*+0!ƫ0$0ƫ+. /ƫ0+ 5ƫ.!ƫ*+3ƫ)1$ƫ)+.!ƫ1,".+*0ƫ
3%0$ƫ,+0!*0%(ƫ*+)%*!!/ƫ0+ƫ0$!ƫ+. ƫ+10ƫ0$!ƫ0%)!ƫ+))%0)!*0ċ
“I am concerned that financial institutions will have an increasing challenge to fill
board vacancies due to the high workload that comes with our regulatory demands.”
“Potential directors must understand that it is serious and time consuming. Don’t take it
on if you are not prepared for the work.”
3!*05ƫ,!.!*0ƫ+"ƫ %.!0+./ƫ0+( ƫ1/ƫ0$0ƫ0$!5ƫ$2!ƫ01.*! ƫ +3*ƫ0$!ƫ.+(!ƫ+"ƫ$%.Čƫ+.ƫ
+))%00!!ƫ$%.ƫ+*ƫ0$!%.ƫ+. /ƫ!1/!ƫ0$!ƫ,.+&!0! ƫ0%)!ƫ+))%0)!*0ƫ3/ƫ0++ƫ$%#$ċ
“I turned down the Board Chair role because it can be close to a full time job, which
would mean giving up my other boards.”
20%
Talent, Culture and Leadership
%.!0+./ƫ".!-1!*0(5ƫ,+%*0! ƫ+10ƫ0$0ƫ0$!ƫ(%.!ƫ+"ƫ0$!%.ƫ"!((+3ƫ %.!0+./ƫ* ƫ0$!ƫ+. ƫ
$%.Čƫ* ƫ0$!ƫ+2!.((ƫ1(01.!ƫ+"ƫ0$!ƫ+. ƫ$/ƫ*ƫ!*+.)+1/ƫ%),0ƫ+*ƫ0$!%.ƫ%* %2% 1(ƫ
0%)!ƫ+))%0)!*0/ċ
“In my experience, board and committee chairs influence time requirements for directors.
More industry and subject knowledge at the committee chair level leads to more precise
and effective materials and much more efficient meetings.”
“Keeping board members engaged and passionate is critical.”
“When directors are new or ineffective, directors’ time commitment increases.
We recently had a replacement of 75% of the board. Prior to this time, most directors
had served an average of 8 years. Experienced, long-term directors are much more
efficient, even though the new directors bring fresh perspectives.”
“We have effective, efficient board chair leadership. This is very important for us to stay
on track and focused.”
Ć
82% Board Chair
42% Committee Chair
37% CEO
ƫ(.#!ƫ)&+.%05ƫĨĉĂŌĩƫ+"ƫ %.!0+./ƫ.*'ƫ0$!ƫ+. ƫ$%.ƫ/ƫ0$!ƫ)+/0ƫ%),+.0*0ƫ,!./+*ƫ"+.ƫ
!*/1.%*#ƫ0$!ƫ!û!0%2!ƫ1/!ƫ+"ƫ %.!0+./Ěƫ0%)!ċƫ$!5ƫ.!ƫ)+.!ƫ %2% ! ƫ+*ƫ3$+ƫ%/ƫ/!+* ƫ%*ƫ
%),+.0*!ƫ3%0$ƫ.!#. ƫ0+ƫ!*/1.%*#ƫ!û!0%2!ƫ1/!ƫ+"ƫ %.!0+./Ěƫ0%)!Čƫ3%0$ƫąĂŌƫ,(%*#ƫ0$!ƫ
+))%00!!ƫ$%./ƫ%*ƫ/!+* ƫ,(!ƫ* ƫăĈŌƫ0$!ƫċƫ
%.!0+./ƫ(/+ƫ*+0! ƫ0$!ƫ%),+.0*!ƫ+"ƫ0$!ƫ0(!*0ƫ+*ƫ0$!ƫ/!*%+.ƫ!4!10%2!ƫ0!)Čƫ
* ƫ0$!ƫ.!(0%+*/$%,ƫ!03!!*ƫ0$0ƫ0!)ƫ* ƫ0$!ƫ+. ċ
đƫ $!ƫ-1(%05ƫ+"ƫ0(!*0ƫ0ƫ0$!ƫ!4!10%2!ƫ(!2!(ƫ$/ƫƫ %.!0ƫ+..!(0%+*ƫ3%0$ƫ+. ƫ,.+ 10%2%05ċ
đƫ $!ƫ+. ƫ$%.ƫ+.ƫ+))%00!!ƫ$%.ƫ*ƫ%*ý1!*!Čƫ10ƫ0$!ƫƫ%/ƫ.!/,+*/%(!ƫ"+.ƫ
putting information together and getting the right people in place to talk to issues.
đƫ $!ƫƫ* ƫ0$!ƫ+. ƫ$2!ƫ0+ƫ!ƫ2!.5ƫ!4,(%%0ƫ3%0$ƫ!$ƫ+0$!.ƫ+10ƫ3$0ƫ0$!5ƫ
need from each other.
What Issues are Driving Up Director Time Commitments?
%.!0+./ƫ$2!ƫ//1)! ƫƫ)1$ƫ)+.!ƫ,.+0%2!ƫ.+(!ƫ%*ƫ,.+2% %*#ƫ+2!./%#$0ƫ+"ƫ
+.,+.0!ƫ.!/1(0/Čƫ/0.0!#5Čƫ.%/'/Čƫ+,!.0%+*(ƫ,!."+.)*!Čƫƫ* ƫ!4!10%2!ƫ
,!."+.)*!ƫ* ƫ+),!*/0%+*Čƫ* ƫ)*#!)!*0ƫ/1!//%+*ƫ,(**%*#ċƫ*#!)!*0Čƫ
0$!ƫ+. ƫ* ƫ/$.!$+( !./ƫ!4,!0ƫ %.!0+./ƫ0+ƫ,.+2% !ƫ2(1!Čƫ* ƫ0+ƫ10%(%6!ƫ0$!ƫ/'%((/ƫ
* ƫ!4,!.%!*!ƫ0$!5ƫ.%*#ƫ0+ƫ0$!ƫ+. ƫ0+ƫ//%/0ƫ0$!ƫ+),*5ƫ%*ƫ/!00%*#ƫ* ƫ$%!2%*#ƫ
+0$ƫ(+*#ƫ* ƫ/$+.0ġ0!.)ƫ+&!0%2!/ċƫ
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ć
We asked directors which issues were increasing the demand on their time.
50
45
40
35
30
25
20
15
10
47%
45%
40%
39%
38%
5
0
CEO
succession
planning
Board
succession
planning
Risk
management
Mergers
and
Acquisitions
Strategic
Planning
Director comments included the following:
“We spend much more time on strategy. We have become more involved in the
development of the strategic plan as opposed to simply endorsing one presented
by management. We spend more time discussing and debating performance against
strategy at nearly every board meeting.”
“You need to ask the question - why are we looking at this? What value can the board
provide? Why are we looking at this now? If the board does not directly require
oversight of an issue, or add real value, the agenda item should be removed.”
“You can look into things like the efficiency of the material provided to the board
pre-meeting as well as focusing some issues primarily to committees; however
the time demanded by boards is increasing because more issues come on to the
agenda such as risk management, succession planning and environmental focus.
These issues require time, thought and knowledge.”
What are Boards Doing to Make the Best Use of Directors’ Time?
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BOARD
MATERIALS
EXECUTIVE SUMMARIES
& BOARD PACKAGES
Ĉ
“All materials are prepared in the context of ‘what is the board being asked to do’
and ‘why is the information included?’ If it is not critical, it is moved to the appendix.
At times, volume is a necessary evil but it is the exception here. More focus on value
adding instead of wading through a lot of extraneous information.”
“An effort on quality of pre-meeting materials continues to improve things.
Well-prepared and focused information is key so the meetings can focus on
discussion, not presentation.”
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* ƫ 2*0#!/č
INTRANETS
“It really is helpful to have it easily accessible and to be able to review past
board materials through online access.”
USE IPAD
“With the increased use of electronic transmission of board material,
management tends to send volumes of information to the board. It is too
easy to “dump” superfluous materials in the site and that way they can’t be
criticized for not supplying all the information.”
“I find the board portal more difficult to use in that it takes more time and
doesn’t allow for flipping back and forth between documents.”
The most frequently reported measures being used to make more effective
use of directors’ time Ĩ*+0!čƫ/+)!ƫ %.!0+./ƫ.!,+.0! ƫ)+.!ƫ0$*ƫ+*!ƫ)!0$+ ĩ
tighter executive summaries/board packages
80%
earlier distribution of board material
49%
use of technology such as iPads
64%
consent agendas
47%
regular CEO communications between meetings
61%
more active meeting facilitation/leadership
34%
board portal or intranet
61%
improved summaries of industry and competitive info
32%
greater work delegated to committees
57%
8
tele/video conference meetings
20%
“We still run our meetings in the same time block as 10 years ago while we have tripled in
size and complexity. We have had to become very efficient at using our time.”
“We have maxed out the efficiency gains from technology (portal, ipads, etc.). We have
made more progress recently with consent agendas and tighter management summaries.”
“These measures have been helpful, but the key is not sacrificing the core for the sake
of speed and efficiency. This is the responsibility of the Chair.”
“These measures have made a bit of a difference but not huge. How the Chair and
CEO work together really determines how you spend your time.”
“The primary effect has been to minimize the continued growth of time demands,
but not to reduce them.”
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We need to devote more time to developing the strategic plan and ensure that all
decisions are tied back to supporting the strategic direction agreed upon. It is when
a corporation strays from the plan (or they consciously adjust the plan and adopt a
revised one) that the board bogs down attempting to deal with activities that were not
anticipated and/or are not core to the business.”
“More effective reporting on operations would reduce the time spent on this topic and
make more time for areas where we can be of more value.”
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/!!ƫ)+.!ƫ%),.+2!)!*0ċƫ
“We need better material with more concise and clear takeaways.”
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“I continue to press for tighter meetings and holding to those schedules.”
“We need to focus on a well-developed agenda; there is too much drift
in meetings.”
“Work with management on how to communicate effectively to the board, to use
executive summaries better, and to highlight the “so what” factor for directors.”
Ċ
External Forces: Regulators and Major or Activist Shareholders
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MAJOR
SHAREHOLDER
REGULATORS
%.!0+./ƫ(/+ƫü* ƫ0$0ƫ .!//%*#ƫ/$.!$+( !.ƫ%//1!/ƫ* ƫ
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0.*/,.!*5ƫ* ƫ+))1*%0%+*ċƫ
“Major shareholders, primarily pension fund managers, are
demanding more and more from boards. This isn’t going
to change or decrease, you just have to find a way to do it
efficiently and work at the relationship with them.”
“Shareholder activism is requiring more director time for
issues like say on pay. This means less time on targeted
issues.”
Moving Forward - Less Time, or More Effective Use of Time?
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This year directors would like...
MORE
SPEND TIME
EFFECTIVE
PROVIDING
USE
REAL VALUE
OF TIME
āĀ
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Boards should consider:
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