The Three Phases of a Board’s Evolution
Boards of directors have undergone a rapid transformation since the Sarbanes-Oxley Act of 2002. The shift in power between the CEO and the board is perceptible. Directors are taking their responsibilities seriously, speaking up, and taking action. It’s a positive trend and an exciting time for boards.
But the evolving relationship between the CEO and the board has yet to find the right equilibrium in most cases. It’s important that boards become active, but there is danger in letting the pendulum swing too far. Astute directors and CEOs sense the tension. They recognize that just as past practices have failed them, recent attempts to make the board a true competitive advantage are not always ...