Rising Role of Corporate Boards: What Could It Mean for Business Location?

A recent study conducted by Mercer Delta Consulting, in conjunction with The Center for Effective Organizations at the University of Southern California’s Marshall School of Business, reveals that Boards are exerting more influence in the Boardroom and have greater independence from management. The study found that:

- 93% of directors surveyed felt their Board was independent of
management “to a great” or “very great” extent
- 95% said that Board members voice opinions that conflict with the CEO’s view
- 73% said CEOs have less control over their Boards “to some” or
to a “great or very great” extent
- 92% of directors indicated that they had influence over the meeting agenda

Despite this shift, directors were positive overall regarding the dynamics in the Boardroom and their ability to work effectively with management:

- 92% said that the Board works well with senior management
- 95% reported Boards receive sufficient information to carry out their responsibilities
- 96% indicated that the CEO keeps the Board informed about
significant matters affecting the company

My question is this: "Given this trend, will boards exert greater influence on where their companies locate business facilities in the future?"