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February 17, 2009 03:37 AM

Are board of directors over rated in value they offer?

Should companies redesign towards smaller board of directors or no board at all? Does a board of directors affect the profitability of the company?
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Best Answer  Chosen by Asker

 
February 17, 2009 03:56 PM
I think it depends on the board and the purpose of the company... For non-profit companies, you HAVE to have a board, and usually they are pro bono.

For the non-profit I run, I want a small board of directors to control and manipulate... uhh... make quick decisions. I want to keep the board small so there is less politics, but I could understand how someone would want a larger board.

There are certainly value-adds to a larger board. Having people on your board that advocate for you in certain areas. In my case, we have a RN on the board so she can advocate to hospitals on our behalf. We also have a top-notch MBA on our board... he contributes to the business side of things of the business.

There are cetainly board that I wonder why they have some board members, but, as with anything, people can get greedy. If it's a publically-held company, then the stockholders are typically able to vote for the wages the board gets.
Asker's Rating:
• Value added board members can be replaced with experience corporate officers. What measurable value in terms of actions has your board provided that an empowered group of corporate officer couldn't do?


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