Broc Romanek has posted the results of a very interesting survey of corporate boards. High on my list of surprising results is the very first question:
1. When your company recruits new directors, do you conduct a background check on the candidates:
- Yes - 82.4%
- No - 17.6%
I find it astonishing that about 1 in 6 firms selects directors without doing a background check. Given that selecting new directors is one of the most important things a board does, that the board has a legal obligation to make informed decisions, and the potential for negative publicity if one ends up picking somebody who flames out in a high profile way, this seems incredibly irresponsible.
