Thursday, September 16, 2010
This article is interesting. It spotlights a lag in public perception about company directors. A CEO fails and isn't able to move to another company to start over. A director on the board of a failing company can and does move to another without penalty. While this is happening today, it is unlikely that it will happen much longer. Directors are coming under an increasingly harsh assessment for their activities on boards. Serving as a director now is a hard job. Fewer candidates today want the position. This may be partly why directors of failed companies are able to find board positions elsewhere. If directors of failed companies are ruled out of serving on other boards, it will be all the more difficult to find people to serve.