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Research Bits
Board Formation Does Not Matter—Factors related to how a board is formed appear NOT to have any significant impact on profitability. For example, a CEO sitting on another board does not favorably or unfavorably impact profitability of the CEO’s own company in any significant way. Similarly, other interlocking board memberships do not positively or negatively affect a company’s opportunities for profitability.
Though most boards recruit their own members, the act of doing so does not impact profitability.
Apparently, how the board gets formed is much less important in terms of profitability than whether the board has a diverse membership, is comprised of competent and experienced members and has expressed its vision for the company.
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Better Board Governance |
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Creating Stronger Organizations by Providing |
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Better Board Governance.com |