Motivation
Directors want to make a real impact on the board
The motivations to join boards are shifting toward impact and purpose over monetary rewards or prestige.
Two of the main drivers of this shift are the increasing responsibility and personal risk - both reputational and legal, along with a new generation of more diverse board candidates. Another trend we are seeing with this change is that board directors are now accepting fewer board positions, in order to fully devote themselves to a smaller portfolio of companies.
To address these motivations and attract board talent, companies must gain a deeper understanding of these motivations.
- Giving Back & Contributing: Board work is a significant way to give back the knowledge executives have earned throughout their careers and contribute to better outcomes for organizations and their stakeholders.
- Meaningful end of career: Board work today is more critical than ever to ensure that companies not only grow, but also have a societal impact. For more experienced members, serving on a board is a chance to end a career on a high note.
- Impact: Boards serve today as stewards of company issues and uphold environmental, social, and governance commitment. There isn’t a better place than a board for opportunities for greater impact.
- Network & Collaboration: Board members can build solid relationships and exchange ideas with their peers, who are increasingly diverse; not only in gender, racial-ethnic, and demographics, but also in ideas, backgrounds, and life experiences globally. This is a key motivation for those who seek to leverage their expertise as a director while connecting with individuals who provoke different and innovative ideas as part of a group.
- Prestige: Boards are a two-way street. Not only does a director provide meaningful contributions, but the prestige that stems from these roles also enhances their personal and professional brand, wherever they may be on their professional journeys.
- Learning: This was mentioned by most respondents as a key motivator, with many noting “weaning off the executive muscle”, “how to govern versus be an executive”, “broadening sector knowledge” and “exposure to new industries and geographies” as key areas for growth.
The culture and dynamics of boards can vary significantly – in terms of openness, inclusiveness, alignment, efficiency, and more – therefore board director candidates will probe their personal match with a specific board environment more than ever.
Interestingly, money does not often seem to be a key motivator, but some board directors will look at the opportunity cost of taking one appointment versus another when reaching their maximum capacity or when retiring early and building a portfolio career.
Contributors
Digital Leads
Amadeu Porto, Joanna Scheffel
Design Team
Aditya Gupta, Arnab Kar, Kamaljit Marwaha, Dapinder Pal Singh Bahl, Ginlian Guite and Richard Khuptong
The authors would like to thank the Chair/Board members who participated in the survey, Egon Zehnder consultants for their internal/external insight and EZ colleagues who contributed to this study: Amit Kumar, Devyanee Kaushal, Johanna Prasch, Luis Fuhrer, Sonika Ganjoo and Svenja Weitzel.