Boards and senior leadership have distinctive needs for executive search and consulting services to find and recruit top organizational talent. Meeting those needs is a strength and key focus for Stanton Chase. We are called upon regularly to advise clients on the assessment and selection of top corporate leaders around the world.
The Leadership Challenges Ahead
We believe that the importance of the leadership axiom cannot be sacrificed if an organization seeks to achieve its mission statement and growth objectives. The challenges facing Boards and CEOs are escalating. Stakeholders are increasing their expectations for successful results even as resource, market, and financial uncertainty continue. In short, Boards and CEOs are dealing with the challenges of globalization, risk management, regulatory scrutiny and shareholder activism. Moreover, Boards today are seeking leaders to drive transformation and success, and who possess true strength in strategy and multicultural sensitivity.
In this regard, we believe the requirement for diversity and inclusion of leadership and BOD composition will continue to be a priority of focus.
What Makes a Board and CEO Search Different?
Enabling Boards to find leaders requires the highest level of consulting experience and ability. These searches are obviously both challenging and crucial to the success of an organization. They may also be delicate, high-risk and confidential. Trust is essential. Recruiting assignments must look beyond job function and credentials. They require an in-depth understanding of an industry, culture, and organization, and the strengths and competencies a leader will need.
These assignments require business connections at the highest level within a client’s industry as well as industries with transferable skill requirements. Moreover, searches of this kind require a creative, adaptable and insightful consulting approach.
Observation on Board of Directors Assignments
In today’s global environment and translational grid of cross border business, Boards of both public and private companies and NGOs are becoming more diverse and complex. The external market, competition, and shareholders/stakeholders are becoming increasing vocal on change management, succession planning, and the requirement to have Boards reflect the composition of customers, clients and stakeholders served. This change and trend will continue to add vitality to Boards and should enable organizations to increase their margins of success. Add to this the increase of regulating influences by various governmental agencies and you have an interesting dynamic going on now and into the future.
We at Stanton Chase are cognizant of these changes and believe we are at the forefront of not only understanding what is happening globally but also implementing commitment plans to recruit diversified Board Membership for our client organizations.
With over 70 offices in 45 countries, we have been able to observe and recognize the global influence of BOD changes and thereby continue to advise clients on Board composition, balance, and structure. In this regard, we have established a BOD specialization to bring focused attention to this global priority. By sharing information and interacting among ourselves, we have been able to stay abreast of governance trends. Moreover, our observations and knowledge means we can continue to achieve value for our clients in the very competitive landscape and global evolution of Board leadership, particularly in a “one-market, one-economy” worldwide environment.
Our Approach to BOD Assignments (10 Overlapping Steps)
• Closely interface with Nomination Committee and key stakeholders.
• Define strategy requirements – developed by diagnostic approach using Board composition matrix.
• Set general and specific role specifications and responsibilities (strategy oversight vs. hands on).
• Understand time requirements – meeting and projects in-between.
• Determine candidate community.
• Insure compensation and program understanding.
• Implement contact and screen evaluation process – “Nominations”.
• Gain consensus on finalists – appointment closure and acceptance.
• Serve as candidate interface and communicator point.
• Close out candidates not advanced – “high touch”.
Our Senior Consultants Are and Have Been Business Leaders/Board Members
Our global consultants possess a wealth of personal experience in corporate leadership. Thanks to this advantage, we understand Boards and CEOs and are highly sensitive to the issues and pressures organizations face. We also understand the ethics, sensitivity and discretion required and recognize the drivers of success in today’s dynamic and complex global economy.
Again and importantly, many of the senior consultants have themselves been BOD members and thus bring this richness of personal experience to the recruiting and selection process.
BOD Compensation Trends
Over the past several years, we have observed that the methods of compensating non- employee directors has changed in relation to legal questions along with the liability risks of serving as a director. Additionally, directors typically need to spend and dedicate more time to accomplish their role responsibilities and at the same time to meet the rigors of more scrutiny and audits by stakeholders.
As a result, fewer candidates are interested in serving and thus a supply/demand in balance of qualified candidates is becoming a consideration.
To offset this trend, compensation for BOD members has changed and increased to motivate interest. However, the basic mix of cash and equity remain as fundamental elements. Moreover, we at Stanton Chase try to keep abreast of these compensation trends as they develop.
Our Best Practice Process
• Our approach and experience enables us to respond with a comprehensive and rapid response to Board and CEO needs:
• Hands on Senior Service: Our lead consultants and global partners work directly with a Board or Governance Committee.
• Close Working Relationships: We develop close and effective working partnerships with clients to ensure we fully understand requirements.
• Deep Listening and Consulting: We listen closely to discern and investigate details for situational leadership within a defined client culture and to conduct the right candidate analyses and recommendations.
• International Prospect Identification: We believe we deliver a truly international search which locates the best candidates, wherever in the world they may be. We also share candidates between offices and thereby insure worldwide market coverage, local business knowledge and significant industry understanding.
• In Depth Research on Short-List Candidates: We investigate prospects thoroughly and only seek nominations and approach candidates with high potential.
Together, these elements ensure delivery of an effective and comprehensive candidate short list.
Stanton Chase provides Board and CEO services within many industries. Whether it is a startup company seeking a new CEO, a mid-market firm looking to expand its Board, or a Fortune 500 company working on their succession plan, we stand behind our clients as a partner and are prepared to offer our experience in this all-important recruiting process.
To find an experienced consultant to confidentially assist you with your Board or CEO needs, contact the Stanton Chase office closest to you for discussion.