What do Bob Geldof and Nick Mason (drummer and percussionist with Pink Floyd) have in common?
They are both company directors and part of a trend now to recruit celebrity directors, according to the Sunday Times
All this is supposed to be about rejuvenating boards, getting rid of the stuffed shirts and bringing in people that could give broader advice and input. Widening the gene pool, as it were. Which has to be a good thing with studies showing that boards are filled with white males of a certain age. And if you are a woman with skin that's a different color, don't even bother.
Still, recruiting stars is a strategy that carries risks. There's the obvious problem of people from non-business backgrounds getting up to speed. Still, if the person is right for the job, that can be addressed.
The bigger problem comes from stacking boards with famous names that have no insights to offer. The board of Hollinger International, which I did my last entry on, is a good example. As the Times points out, Hollinger's directors included Henry Kissinger, former Sotheby's boss Alfred Taubman and Washington hawk Richard Perle and honorary advisors that included Margaret Thatcher, the former French president Valéry Giscard d'Estaing, Fiat's Giovanni Agnelli and Newt Gingrich.
Increasing the gene pool for boards is a must. Yes, boards need more women and minorities. That's not about political correctness. They represent a substantial slice of the economy and have a lot of purchasing power.
But most importantly, boards need people who think differently and who are not afraid of asking hard questions. Hiring star-struck recruiters to go for the glitz and glitter is just another quick-fix solution which will not deal with the problem. It's just dumb.
no comment untill now