Presentation Transcript

1. Joining Your First Public Company BoardOne Woman’s Journey

   Nora M. Denzel Oct. 2, 2013 @ndenzel 2013 #GHC13
2. Today’s Topics Why should women serve on boards? What are the steps to getting on a board? My journey to a public board Q&A
3. Today’s Topics Why should women serve on boards? What are the steps to getting on a board? My journey to a public board Q&A
4. Why Should Women Serve on Boards? Boards with more women on them have better business results +53% 14% Avg. Return on Equity 9% Avg. Return on Equity Boards with few/no women Boards with the most women Source: Catalyst 2007, Corporate performance and women’s representation on boards
5. Board Participation Doesn’t Represent The Workforce Women make up almost half (47%) of the workforce in the U.S. Board size of F500 companies averaged 11 members in 2012 And yet, women on F500 company boards are significantly underrepresented 42% 15% 4% 10% 28% 2% Companies with women directors Companies with women directors Companies with women directors Companies with women directors Companies with women directors Companies with women directors 0 1 2 3 4 5+
6. Board Seats Held by Women By Country Norway 41% Sweden 27% Finland 27% France 18% U.K. 17% Denmark 17% +16 %S&P 500 South Africa 17% Netherlands 17%
7. Today’s Topics Why should women serve on boards? What are the steps to getting on a board? My story Q&A
8. Three phases to your first public board seat 1 Research Phase Understand what boards do Decide if board work is right for you Understand why you’d like to serve on a board 2 Preparation Phase Understand your BVP (Board Value Proposition) and strengthen it Join an advisory, non-profit or public board Get your materials in shape No Yes 3 Quiet Search Phase Network with current board members Get the word out (quietly) Attend board events No Yes Your First Public Board Yes 1999 2002 - 2005
9. Understand what boards do 1 Research Phase Non-Profit Boards Public company Public Company Boards Private Company Boards Non-Profit Org. AdvisoryBoards
10. Understand what boards do 1 Research Phase 1.5M in the US Directors typically unpaid & fund raisers Scale is surprising: $3.9B United Way $1.7B Salvation Army $1.6B Catholic Charities Non-Profit Boards Public company Public Company Boards Private Company Boards Non-Profit Org. AdvisoryBoards
11. Understand what boards do 1 Research Phase 1.5M in the US Directors typically unpaid & fund raisers Scale is surprising: $3.9B United Way $1.7B Salvation Army $1.6B Catholic Charities Non-Profit Boards Public company Public Company Boards Private Company Boards Board not required Most pay in stock Some provide a fee Non-Profit Org. AdvisoryBoards
12. Understand what boards do 1 Research Phase 1.5M in the US Directors typically unpaid & fund raisers Scale is surprising: $3.9B United Way $1.7B Salvation Army $1.6B Catholic Charities Non-Profit Boards Public company Public Company Boards Private Company Boards Board not required Most pay in ‘stock’ Some provide a fee Non-Profit Org. AdvisoryBoards Provide support and guidance to board/staff
13. Understand what boards do 1 Research Phase 1.5M in the US Directors typically unpaid & fund raisers Scale is surprising: $3.9B United Way $1.7B Salvation Army $1.6B Catholic Charities Non-Profit Boards Public company 15,000 US Publically-traded companies Board members are typically paid Women hold ~15%of these positions Public Company Boards Private Company Boards Board not required Most pay in ‘stock’ Some provide a fee Non-Profit Org. AdvisoryBoards Provide support and guidance to board/staff
14. Learn what public boards do 1 Research Phase Shareholders Board of Directors Hire (fire) and evaluate CEO Ensure risk is managed Represent the interest of stakeholders Employees, Shareholders, Customers Strategic decision approval Capital structure, budget, etc. Board of Directors Elect Hire Hires & Manages Hires & Manages CEO Executives (VPs, CFO, etc.) Employees
15. 1 Research Phase What Boards are Looking For The following competencies are whatboards cited as important in being chosenfor public company boards. Strategic Planning Information Technology Financial Accounting Executive Leadership Operational 97 105 61 44 56 Global/Int’l Experience Public Board Experience Marketing Industry Expertise Corporate Governance 64 45 99 40 56 Times cited by companies Source: Getting on Board” E&Y 2012
16. 1 Research Phase Why do you want to serve on a board? Women Men Enhance Professional Reputation 81% 61% 18% 31% Prestige conferred by being on a particular board My Personal Reasons Improve interactions with my company’s board Determine if I wanted to be a CEO Learn about corporate governance, new industries Interaction with the team (board and staff) 2010 Heidrickand Struggles Survey
17. Discover Common Routes 1 Research Phase
18. 1 Research Phase Why do YOU want to serve on a board? Other Reasons Chance to have a meaningful impact Enjoy the group dynamics Feel powerful Access to industry leaders
19. Where to Start 2 Preparation Phase Board Value Proposition What are you good at? When are you passionate? Who knows what you know? How are you known? Why would boards ‘buy’ you? NETWORK
20. Make Your Own Development Plan 2Preparation Phase YOU
21. Today’s Topics Why should women serve on boards? What are the steps to getting on a board? My journey to a public board Q&A
22. My board experience 2 Preparation Phase Non-Profit 2005 YWCA 2008 Anita Borg Institute Public Company Boards 2005 Overland Storage 2010 Saba Software 2012 OuterWall 2013 Ericsson Advisory Boards 1999 Santa Clara University MBA 1999 3Par 2000 Contural 2010 Smapper 2012 BizEquity Private Company Boards 1999 InMage 2005 TimeSpring 2012 FirstRain 2013 Ushahidi
23. 2013 1st non-US Public Board 2012 3rd Public Board 2010-13 Three more private boards 2010 2nd Public Board #1 2007 1st Public Board 2005 Non-Profit Board 2005 2nd private boards 1999 1st Private Board 1999 – 2000 1st Advisory Boards
24. 3 Quiet Search Phase How Board Members are Found What sources do you use to recruit new board members? Other board members’ recommendations Search firms Management recommendations Investor recommendations Public databases Others 92% 67% 55% 11% 4% 2% Source: PwC Annual Corporate Directors Survey 2012
25. What you can do Get the right experience: seek out experiences that provide both depth and breadth of perspective and responsibilities Be proactive about networking: develop relationships that provide guidance and visibility and participate in both formal and informal women’s networks Get educated: There are programs (i.e. NACD Board Leadership Conference, Directors College, Board Member Magazine) aimed at improving your ability to contribute to corporate oversight activities and become a valuable director Look beyond the F500: join the board of a smaller public company, a private company or seek out a seat on a non-profit board or a business school/university advisory council. Don’t’ assume that F500 companies are the only board positions where you can make an impact. Raise your profile: speak at conferences, play an active role in industry associations, be present on professional online networks.
26. In Summary You CAN join a public board, if it’s right for you A board is unlike any other team you’ll join, so do your homework Focus and find women who have joined boards before you, and ask for help And Finally…
27. Today’s Topics Why should women serve on boards? What are the steps to getting on a board? My journey to a public board Q&A