Board Member a Profession
- A Board Member mandate is... no honorary task, but a challenging responsible high demanding function.
- It is appropriate, that the Board Member... can devote her/himself to this assignment as a main regular occupation.
(Shortened extract from the German law on control and transparency in the business sector)
The days when a singular person held more than 10 board positions are over.
Many enterprises hold more than only the annual meeting required by the law. Panels occupied by more than 6-8 individuals are not able to operate optimally, therefore a broader committee culture has established itself (fiscal panel, human resources committee, nomination committee, strategic board, remuneration committee, funding panel, etc.)
A professional Board Member receives all documents up front well before the meeting, prepares conscienctiously and coordinates with others. Solely the volume of the documents the annual accounts sheet (Balance sheet, profit and loss statement, corporate governance report, risk analysis and most of all the business reports, if not all of them, inches thick in quoted enterprises) require much time and dedication. The post process of such meetings (most of all the protocol, answers to open questions, the study of the received documents) require time. Counting up the required time leads to the conclusion that enough devoted time is a important factor. Particularly chairmen, leading the board, are full-time jobs in quoted enterprises and times of crisis.