Jun 9 2014
Boards Hone in on Sector-Specific Candidates as Economic Factors and Regulatory Compliance Increase Risk; AESC Study Finds Strategic Skills Still Dominate
The 2014 BlueSteps Board Director Career Report, just released by the Association of Executive Search Consultants (AESC), highlights numerous changes in the business environment that have not only impacted the board of directors, but have also made it more difficult for search committees to build a board with the right skills. Now, more than ever, board directors are concerned with the impact of external economic factors and regulatory compliance on their organization, as those factors ranked second and third respectively behind shareholder interests as board directors’ top business concerns.
The survey was conducted in May 2014 and received 107 responses from board directors in financial services, manufacturing/industrial, technology/telecoms, not for profit and other sectors worldwide. Additional findings of the report include:
- Over half (63%) expect to stay in their current board position for two to five years.
- 41% of board directors are concerned with finding new opportunities.
Peter Felix, AESC & BlueSteps President, commented: “Boards can no longer rely on the old boys network or ‘friends of the chair’ to fill what have become critically important positions. As the role of the board director comes under increasing scrutiny and the prudential burdens upon directors grow, it is incumbent upon chairs of boards and chairs of the nominating committees to be fully knowledgeable about the competencies, behaviors and motivations of their board members. The board must reflect the challenges of the environment and the skills required to address them.”
Following the study, BlueSteps will offer a webinar for both current and aspiring board directors on June 18, 2014 entitled Top Tips for Gaining Your Board Seat. This webinar will provide a chance for executives to hear from a panel of senior executive search consultants from top executive search firms who specialize in board searches. To learn more, please visit: https://www.bluesteps.com/products/board.aspx.