Good Corporate Governance
Part Four
In Parts 1-3, we’ve covered why and where to start for selecting outside directors.
Let’s look at how to find those candidates.
Where do you find the candidates?
Finding qualified candidates can be both easy and difficult, depending on the resources you have available. If your network of contacts includes individuals who would be qualified candidates you have a great place to start.
What if that isn’t the case? There are resources you can use to find board members.
There are organizations that assist with matching board members with positions, similar to recruiting firms for job placements. This solution may not be the right fit for every organization.
Within the ESOP world, there are a number of resources that can be used to find potential board members. These range from the national organizations (NCEO and TEA), to service providers (trustees, valuation firms, consultants), to network connections (roundtables, national conferences), and more.
One of the topics we discussed at our local CFO roundtable was outside board members. Just having the conversation opened the eyes of members of the group to the potential for outside members.
What are the benefits of using your network to select candidates?
· You already have some knowledge of the candidate.
· Candidates may have some knowledge of your business
· Referrals from trusted sources tend to lead to better fits
Your list of candidates should be longer than the number of positions that you have open. The goal is to find the right candidate. Use your criteria to determine if the candidate list meets your objectives. These objectives will change over time as the needs of the company and board change.