Maria C. Green, former senior VP and general counsel of Ingersoll Rand and director of Littelfuse Inc., Tennant Company, Fathom and WEC Energy Group, considered joining a board when she first became general counsel in 2011. But she didn't accept her first director position until 2018. She says her route to board service was a marathon, not a sprint.
“As general counsel, I was fortunate to work with a CEO who believed that four or five smart people were better than one. Everyone was treated as part of the executive leadership team,” Green says. “Having visibility into the board's decision-making process, understanding the strategy and asking the right questions — like ‘What are the risks and opportunities?' and ‘How do we minimize the risks?' — gave me a bird's-eye view of what an effective director does and, more importantly, does not do.”
Green says her experience with mergers and acquisitions expanded her understanding of complex finances. Understanding finances was another skill that she contributed to the boardroom. “Many boards look for directors that understand finances like a CFO or the chair of the audit committee,” she explains. “My M&A background helped make me more valuable in the boardroom.”
Research supports the advantages of women in the boardroom. According to a 2020 United Nations International Labour Organization (ILO) study, companies with gender equality on their boards are 20% more likely to improve their performance. That's why a European Union directive requires that every stock-listed company in the EU have at least 40% female nonexecutive directors or have a combined female representation of the company's executives and nonexecutive directors of at least 33%.
Additionally, lawyers are highly valued on boards, according to a 2023 Bloomberg Law article. Shifting risks and new regulations require legal expertise. Attorneys also are skilled at navigating conflict.
Susan S. Lanigan is a director of Simmons First National Corporation and Kirkland’s Inc., and formerly served as a director on a private employee stock-owned consumer products company. “Serving as general counsel for three corporations developed the skills, knowledge and expertise I needed to be an effective corporate director,” she says. “As GC, I attended hundreds of board meetings, observing both functional and dysfunctional boards. These observations contributed to my knowledge of what it means to be an effective public company board member.
“My career was in retail, so I understand the unique business challenges of these boards, including corporate governance, as well as executive compensation,” Lanigan adds. “For my board position at Simmons First National Corporation, I was able to leverage my SEC experience, ultimately helping me get better at board decision-making.”
According to a Harvard Business Review article, women bring strong decision-making skills to the boardroom. They come prepared, are concerned with accountability, admit when they don't know something, ask questions and put issues on the table. In brief, the quality of boardroom discussions improves when women are at the table.
“Serving on a board offers the opportunity to leverage my experience and expertise in a way that supports organizational growth and integrity,” says Kim M. Rivera, chief legal and business affairs officer of OneTrust LLC, and director of Thomson Reuters, and Cano Health. “The role provides a platform to influence corporate strategy, address complex challenges and work alongside other talented professionals who are equally committed to excellence.”
With boards seeking diversity, and many levying new term and age limits, opportunities for new members to join a board are growing.
“You never know where the opportunity may come from,” says Marie Oh Huber, former senior VP and chief legal officer of eBay Inc. and director of PGE. “One of my board roles came from a friend that organizes both CEO and GC dinners. They connected me to a CEO who was looking for a new board member.”
“Opportunities arise when you least expect them,” Huber says. “Maybe it's your neighbor or another parent on your kids' soccer team. You just never know where the right opening might present itself.”
Huber's advice to others is, “Pay it forward. Recommend others who might be qualified to sit on a corporate board — especially women lawyers.”