Business Class
Get on Board
In this tough economy,
many CEOs are stepping
down from corporate
boards to focus on their
own companies. Is this
finally the opportunity
for more women and
minorities to take their
seats at the table?
By Sheryl NaNce-NaSh
IlluStratIoNS By NIgel BuchaNaN
With the economy in a state of flux,
many CEOs are deciding they cannot
divert attention from running their own
businesses and are stepping down from
outside board commitments. Now that
there’s more room at the table, who
will sit there? Is this an opportunity for
women and minorities to make significant inroads into the boardroom?
The numbers say the gate is open.
In 2009, according to independent
research group The Corporate Library,
31 of the current S&P 500 CEOs—and
45 of the current Fortune 1000 CEOs—
left boards outside of the companies
they head. For some CEOs, the challenge of having to deal with their own
headaches and shareholders as well
as those of another company in this
changing economic landscape proved
unwieldy. Others are leaving because of
retirement or mergers and acquisitions.
But the reality is that board life has
changed. It is no longer a place to sit
on high like royalty. Boards are under
intense scrutiny, and complex issues
such as executive compensation, gover-
nance, risk management, compliance,
“Many believe that serving as an
outside director is one of the most
challenging and stimulating tasks one
can undertake, notwithstanding the
increased risks,” says Howard Shecter,
