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Constructing a Board of Directors
- What are some of the most important things that CEOs should consider in selecting Board members?
- How does a CEO “test” Board members to see if they posses the characteristics that she is looking for?
- In selecting BOD members, to what extent should CEOs weigh direct experience in the industry in question?
- What have you learned about the merits and risks of having the seller join the Board after closing?
- Should every BOD member be an investor? Why or why not?
- What are some best practices around attracting and retaining external BOD members who are not investors in the company?
- How valuable is it for a CEO to have an advisor (or advisors) outside of the board who might not be investors?
- How many is too many Boards for a given person to sit on at any one time?
Reporting into a Board for the First Time
- What would you say to a first-time CEO who finds themselves somewhat fearful of their Board? And potentially hesitant to share certain things with them as a result?
- What do good Board members do to establish a sense of trust and safety with their CEOs?
- What exactly are Board members are looking for during those first few meetings?
Reflections from 10+ Years of Board Experience
- Have you been on any “bad” Boards? What common or generalizable themese emerge from those experiences?
- How and when should CEOs communicate bad news to their Boards?
- Should CEOs give regular feedback to their Board members? Why or why not?
- How much time, space, or autonomy should Board members should give to CEOs? How do you strike the balance between engaged and heavy-handed?
- How does a Board member know when it’s time to be prescriptive and give the CEO direct advice, versus when to give them a bit more freedom to arrive at the answer themselves?
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Thanks to our Sponsors
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This episode is brought to you by Avidbank. Avidbank is one of the most experienced search fund lenders in North America, having funded over 40 separate transactions since 2014, for a total of over $300M. They are deeply familiar with the search fund model, and understand the nuances of the fundraising process, dealing with sellers, communicating with your equity investors, LOI reviews, and everything else in between. Reach out to Anthony Rodriguez (firstname.lastname@example.org) or Conor Tidgwell (email@example.com) to learn more.