Return on directors: maximizing return on investment in the board room

Abstract

It’s relatively easy to measure the output of a light bulb. Simply flip the switch and see whether it lights up. For greater accuracy, use a light meter. Even the dimmest bulb can pass this test. The measurement task becomes infinitely more complex, though, when assessing the brightest lights of business: corporate directors. In the boardroom, measurement of individual directors and total board effectiveness is both lacking in depth and consistency. While the board might demand financial return statements on other corporate investments, it is a rare board that shines the same light on itself.