Ken Daly, NACD president and CEO, is featured on CEO Talk Radio discussing how to obtain your first board seat. In the interview, Ken talks about the role that the nominating and governance committee plays in vetting director candidates to ensure that the board’s combination of directors offers skills that are important for the company to achieve its strategic goals.
When choosing a director, the nominating and governance committee creates a matrix that outlines current board composition, as well as skills they want to add to its board. Hot skill sets today include information technology, communications, and global markets expertise, says Daly. More generally, in order to get on the radar of the nominating and governance committee, directors must be able to demonstrate an understanding of the company’s business, but also its governance—including the difference between oversight, which is the directors’ role, and management, which is the CEO’s and management team’s role.
With new Securities and Exchange Commission (SEC) regulations under Dodd-Frank, there is more scrutiny than ever before to ensure that directors are qualified and can truly serve as assets to the company.
One tool prospective directors can use to get on the radar of the nominating and governance committee is NACD Directors Registry, a robust database of qualified director candidates used by a growing number of nominating and governance committees. Another way to expand board horizons is to get actively involved in director education through events such as the NACD Fellowship Program, the NACD Board Leadership Conference or any of the conferences and forums that NACD conducts around the country. Not only do prospective directors get to learn best practices from corporate governance experts and leading directors, but they will find valuable networking opportunities as well.
To listen to Ken’s full interview and hear his tips for how new directors can demonstrate their value, visit http://www.robertgbarnwell.com/039-ceo-talk-radio-your-first-board-seat/ or download the podcast on iTunes.