Nominations to the 2017 NACD Directorship 100 are open until March 31. And while we tally this year’s annual list of the most influential people in boardrooms and corporate governance, we’re sharing responses to questions from 2016 honorees about their perspectives on directorship.
Honorees underscored the importance of creating a strategic-asset board, reflected on the joy of their life’s work, and shared why board leadership can be fun. Selected responses from the 2016 D100 class follow, complemented by photos from the D100 gala held at New York City’s Gotham Hall on Nov. 30, 2016.
To review the entire listing of honored directors and governance professionals, visit the November/December 2016 web edition of NACD Directorship magazine.
What do directors need to keep top of mind in the next five years?
Deborah DeHaas Vice chair, chief inclusion officer, and national managing partner, Center for Corporate Governance, Deloitte LLP
“Often the most effective boards draw on a diverse set of individual strengths, skills, and experiences from their directors. When brought together with the right leadership, diverse talent in the boardroom can help the company address almost any governance challenge. Such capability doesn’t just happen. It takes rigorous commitment to the principles of board composition, refreshment, and accountability to reach the level of top-performing boards. It also requires a deep understanding of current issues and challenges, anticipating those in the future, and determining what critical skill gaps need to be addressed among directors.”
Stephen R. Howe, Jr. U.S. chair and managing partner, Americas Leading Partner, Ernst & Young LLP
“Complacency with a company’s current strategy may open companies to long-term vulnerabilities. Boards must constantly assess and anticipate competitive forces and threats and drive enterprise-wide cultures of innovation and agility. They must recognize that digitalization and sector convergence will continue to disrupt business models and markets. They must oversee organizations grappling with increasingly complex and global forces resulting from ever-shifting political and regulatory agendas such as those getting underway in the United States following this year’s elections.”
Daniel Laddin Founding partner, Compensation Advisory Partners
“Do not be afraid to stick out and use a less typical design if you believe it is in the best interests of shareholders. I believe we are going to see that many of the best performing companies have unique compensation designs linked to their strategies that do not necessarily fit neatly into the paradigm into we see today.”
Paula Loop Leader, PwC Governance Insights Center
“Boards will need to stay current, and that alone will be hard work. They will need to be up to date on consumer trends and technological changes, to geopolitical and other risks, to name a few. Even those directors who are immersed in all of this disruption and change are finding it hard to keep up. The board of the future will have to fully understand the landscape the company is operating in and recognize the potential disruptors that could affect the company and its strategy. To do that, directors will have to spend a lot more time educating themselves, and boards may have to consider reaching out and finding their own advisors from time to time.”
Michael McGuire CEO, Grant Thornton
“Directors need to keep the probability of rapid disruption top of mind, and then marshal the right resources and habits of mind to stay ahead of it. What are those resources? Imagination. Curiosity. Agility.”
Deborah D. Rieman Director, Corning and Neustar
“Boards are inherently risk averse and may devote too much of their attention to avoiding mistakes. In a slower world, that may have sufficed, but today, slow and steady can be fatal. Successful boards in the years ahead will be the ones that encourage the disruption of their own businesses, because if you don’t disrupt your own market, somebody else will.”
James K. Wolf Managing partner, Meridian Compensation Partners
“Regulations and statutes should continue to protect a board’s business judgment, but boards should understand that the general public will have increasingly more information from which to reach their own evaluations and verdicts about a board’s governance.”
What’s the most fun you have had while serving as a director?
Mary Ann Deacon Director, Lakeland Bank
“It has been exciting to be a part of Lakeland’s success. Our accomplishments over the years have given me enormous admiration for our wonderful employees, who make it all possible. And by far, the most fun has been interacting with all the members of the Lakeland family. It’s important for directors to step out of the boardroom and connect with people. I think of this as leadership by walking around—letting employees, shareholders, and customers know that the board is interested in and fully engaged with their needs.”
Edward B. Rust, Jr. Director, Caterpillar, Helmerich & Payne, and S&P Global
“Growing up during the initial buildout of the interstate highway system, I became fascinated with big earth-moving equipment. Later in life, I started buying antique Caterpillar tractors to restore. Joining the Caterpillar board was a natural move. I had a connection to my past but also a fascination with the rapidly changing world of manufacturing. The real fun is when we tour the proving grounds and have the opportunity to operate some of the really big equipment. ‘Getting in the dirt’ is a joy for an old farm boy, and even a director.”
What was the greatest challenge you’ve faced in your career?
James W. DeLoach Managing partner, Protiviti
“I never worked harder in my life to build the Protiviti brand. But the most gratifying part of the experience for me personally was working side-by-side, shoulder-to-shoulder with men and women who were as committed to our collective success as I was. Protiviti’s market presence today is one of the treasures of my working life.”