Board members of public companies are overwhelmed! Here’s why:

Cathy Connally Blog, Corporate Governance

Board members tend to be very accomplished and connected individuals, which is why they are board members. That may not be enough in today’s world for these reasons:


  1. Board members are part-time but the responsibilities are full-time.
  2. Independent board members are challenged to be truly independent, because they are dependent on management for so much crucial data.
  3. In today’s global markets, many board members do not have sufficient background on the locations and challenges the company faces.
  4. Many boards are not diverse – the old boy’s network may not be enough.
  5. The legal complexities for public companies are increasing each year.
  6. Liabilities for boards are out of scale compared to the average board member’s compensation.
  7. Many companies have operations in markets that do not play by the North American rules. Board members are often at risk due to international operations without even knowing it.
  8. Many board members have never  visited the operations over which they have oversight responsibilities.
  9. Many boards are not integrated into the company’s strategy and risk management, to the extent that various disclosures and underlying frameworks require.
  10. Many boards struggle to balance shareholder value and performing it in a responsible manner, all while trying to achieve adequate corporate governance.