Board leadership is a critical element of board performance. Between heightened expectations for shareholder engagement and new risks falling under the board’s purview, today’s chairmen of the board have full plates and busy agendas.
To address the topic of board leadership, Tom Leppert (Board Member, Tutor Perini Corporation) draws on his experience from both sides of the table: CEO and board chairman. Host TK Kerstetter asks Leppert to outline the characteristics and practices that effective board leaders possess.
The chairman especially needs to have an appreciation for what reality is—both in the market and in the company…The chairman has to have his nose in the business, but his hands out of the business. [He or she] has to be engaged enough to understand exactly what the issues are and be able to establish parameters, plans, etc. to avoid issues that may come in the future.
Kerstetter probes Leppert to comment on the nagging statistic from PwC’s Annual Corporate Directors Survey, which says that 35% of directors say that a fellow board member should be replaced. In this episode, we also cover:
- What skill sets are critical to the chairman of the board?
- How should the chairman engage with other board members between meetings?
- What is the chairman’s role in taking action on non-contributing directors?