Challenge
A global provider of human resources outsourcing and consulting services preparing for an initial public offering needed to recruit three independent directors for its new board. The company was looking for senior executives of well-regarded companies who not only had board experience, but also would appreciate the transition the firm was undergoing from a strong partnership culture to a public company.
The new directors needed to reflect the gender and ethnic diversity of the firm and its clients, and bring a range of skills and experience to the board. In particular, one director needed to have the background and credentials to chair the audit committee and another needed to have the experience to chair the compensation committee.
Actions
Our challenge was to identify highly qualified but distinctly different directors and beat the IPO deadline. With just six months to recruit the right mix of directors, we assembled a team with extensive board recruitment experience for a nationwide search. The first priority was to find a senior director who could help attract other board members. We sought people who had been affiliated with companies known to value employees and customers and who would be able to work collaboratively with the management directors.
We identified a large group of candidates who brought a range of business skills and knowledge, including operating and governance experience to the company, and who represented the desired ethnic, gender, age and geographic diversity.
Result
The client decided to ask four of the candidates — rather than three, as originally planned — to join the board. The new directors included two former CEOs, who came from a package distribution company and a global consumer goods company, the founder of a leadership and organizational development firm and the former chief financial officer of a print media company who could serve as chair of the audit committee. Later, as our client continued its evolution to a traditional board structure with a majority of independent directors, it asked us to recruit two additional outside directors.
Our extensive work with boards and in-depth knowledge of corporate governance also led the client to seek our advice on best practices. We provided information and counsel on board terms and limits; the interviewing process for board candidates; definitions of independence; compensation for outside directors; board committee structure; and new director orientation. As a professional services firm, the client understood the value of a strong partnership with a search firm and investing time in the search.