Return on directors: maximizing return on investment in the board room

Marilyn Seymann (Marilyn Seymann is president and CEO and founder of M ONE, Inc., a financial services consulting firm. She is the author of numerous articles on banking strategy, technology, and governance, and she recently co‐authored The Governance Game, a book on corporate governance.)
Brian Kleinhanzi (Brian Kleinhanzl is a senior consultant with M ONE, Inc. who specializes in financial services and performance metric development.)

Handbook of Business Strategy

ISSN: 1077-5730

Publication date: 1 December 2004

Abstract

It’s relatively easy to measure the output of a light bulb. Simply flip the switch and see whether it lights up. For greater accuracy, use a light meter. Even the dimmest bulb can pass this test. The measurement task becomes infinitely more complex, though, when assessing the brightest lights of business: corporate directors. In the boardroom, measurement of individual directors and total board effectiveness is both lacking in depth and consistency. While the board might demand financial return statements on other corporate investments, it is a rare board that shines the same light on itself.

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Citation

Seymann, M. and Kleinhanzi, B. (2004), "Return on directors: maximizing return on investment in the board room", Handbook of Business Strategy, Vol. 5 No. 1, pp. 23-28. https://doi.org/10.1108/10775730410494242

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Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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