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Center for Effective Organizations

Working Paper

Who's in the Boardroom and Does It Matter: The Impact of Having Non-Director Executives Attend Board Meetings

E. Lawler, D. Finegold. July, 2005

The presence of corporate executives at board meetings used to be assured. They were typically on the board and had a chance to influence board decisions and help the board carry out its decisions. Now that boards are dominated by independent directors, there is no assurance that corporate executives will be at board meetings. This raises the question of whether it's a positive to have them present. The present study looks at the impact of having key senior executives attend board meetings even though they are not on the board. The results generally show that boards function better when the heads of HR and marketing, CIOs and business unit heads attend meetings. When one or more of these individuals attend board meetings, boards do a better job at performance management and generally are more effective in a variety of areas including long term strategy development, CEO succession, identifying threats and assuring ethical behavior. The presence of the CIO was most strongly linked to the effectiveness of the board.

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