Posted on November 17, 2015

Shareholder pressure has made the recruitment of corporate directors a more transparent process. In many cases, that means turning to professional search firms when it’s time to recruit a new director. Paul Stanley, Senior and Managing Partner, and Sal Badali, Partner at Odgers Berndtsen in Toronto share their views:

P.S. “It’s important to differentiate between private and public sector boards. In the public sector, mandates dictate greater transparency, greater balance and mandated diversity. They also have a list of other criteria, including regional representation in many cases. That means they invariably require outside advice in recruiting directors.”

S.B. “When they start a search process, many boards are strategic and issue-driven. They collectively anticipate what sort of issues the board is likely to face going forward. Then they look for someone who has direct or related experience.”

P.S. “There’s a growing understanding that a truly diverse board is going to be more than just the traditional pool. And that makes for better corporate decisions.”

S.B. “It all comes back to risk management—even indirectly. A strong, diverse board that has different personality types and solid credentials is going to do a better job of anticipating challenges, protecting the reputation and the brand. The real risk these days is not taking care of all that proactively.”

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