RESPONSIBILITIES OF BOARDS OF DIRECTORS

Most discussion of leadership focuses mainly on the management team of an organization. However, another key leadership group of every organization is the board of directors. It seems to me that in the aftermath of this global economic crisis, it is critical that we discuss the roles and responsibilities of the boards of these companies. They have a fiduciary responsibility to the shareholders and an oversight role of management.

It does not matter if we are discussing AIG, GM, Lehman, or any other company. I still come back to the same question. Where was the board? Why aren't they being held accountable?

When congress holds hearings and drags the CEO's in for a grilling, why not drag in the board members? This question is applicable if we are discussing risk management or lack thereof; compensation that pays executives for the immediate profit but has no impact for later losses, etc.

The accountability of boards is an area that needs rethinking after the crisis.

Until next time,
Gail