Cornerstone of the Board: A closer look at lead and presiding directors
Julie Hembrock Daum, Tom Neff and Julie Cohen Norris
March 2006
One of the most interesting governance trends is the growing recognition of the lead or presiding director role as a valuable mechanism for enhancing board independence and effectiveness. As of mid-2005, 94% of all S&P 500 boards had designated a lead or presiding director, up from just 36% in mid-2003. But what exactly is the brief of the lead or presiding director? In the absence of clear regulatory parameters, we found that boards are still learning as they go.
In this issue of Cornerstone of the Board, we explore the responsibilities of the role, how it is adding value, how to select the right person and, subsequently, make it worth their while. The article also outlines the best practices for lead or presiding directors and why now is the time for boards to revisit how they have structured the role to ensure optimal performance.
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