For growing companies that want outside perspectives and expertise, an advisory board may be just the thing.
Alix Stuart, CFO.com | US
March 8, 2011
Good article. As a board member of a company with subsidiaries worldwide, we have struggled with a structure under which board members who have expertise and available time can participate more fully at a divisional level. The result was the creation of advisory boards at each subsidiary, boards which take a deeper dive into the operations of the subsidiary and involvement with management at a subsidiary level. One member of each such sunsidiary board is a member of the board of directors, thereby tying together the "leaership" of both boards. Its a strategy that has worked well, provided additional expertise to the subsidiary management teams and additional insight to the board. It is not however, a composition on which we can find much comparable data for public reporting purposes (board structure, comp, etc.) Thank you for the article. Would look forward to more coverage of the topic.
Posted by WENDY DICICCO | March 09, 2011 12:53 pm
The concept is thoughtprovoking to engage Advisory Board to provide new perspective and avoid group thinking. However, the problem associated is how to make the success of Advisory Board tie with the success of company. Most companies are tying the remuneration of the top class executive with equity instrument so thier success tie with the success of the Company. Don't know how it work out. If you could provide your thought on this to better grip on the subject matter.
Posted by Muhammad Ali | March 09, 2011 10:58 am© CFO Publishing Corporation 2009. All rights reserved.