Magic in the Mix: Building the Right Board Talent Complement
A Conversation Between Christopher P. Skroupa, Skytop Editor-in-Chief, and Steve Pully, Director, Multiple Boards, Co-Founder, Speyside Partners / April 11th, 2022
Steve Pully serves on boards of public and private companies and as a corporate executive, he performs consulting and investment banking services for companies and investors, and he acts as an expert witness for legal disputes involving corporate governance and restructuring issues. Mr. Pully has served on thirty-two boards of public and private companies. Mr. Pully was previously an executive with two different hedge funds, including a deep value activist fund that he was the president of Mr. Pully was also previously an investment banker at large investment banks and a practicing attorney.
Mr. Pully is licensed as an attorney and CPA in Texas and is a CFA Charterholder. He also holds a variety of FINRA licenses. He earned his undergraduate degree with honors in Accounting from Georgetown University and is also a graduate of The University of Texas School of Law.
Christopher Skroupa: How do you decide what should be considered when evaluating a new board member to add to your existing complement?
Steve Pully: The first thing is to review the current make-up of the board to consider where there may be needs. The needs should be considered in the context of how a modified board can improve the success of the company. The perceived needs for a board could involve a variety of factors, including experience in certain areas and diversity. The board must also consider the social fit of the candidate in an effort to identify someone who is most likely to be an effective board member.
Christopher: Candidates conduct their own due diligence when considering if a board and the company it leads is a good match. How do you participate in this process of helping a candidate assess if a company is a good match?
Steve: By providing the candidate with ample access to senior management and the board to ask questions and determine if there is a social fit. This often involves having the candidate sign an NDA. The company should provide the candidate with ample information about how the investment community views the company. Management and the interviewing board members should provide ample perspective on the challenges and opportunities that the company has.
Christopher: Once chosen, how do you bring a new director on board and what is needed to ensure a successful integration into the mix of director talent?
Steve: The director should be given ample opportunity to have an effective onboarding, which involves detailed meetings with management and board members and may include a visit to the company’s headquarters and operational locations. The onboarding process should also involve the director gaining an understanding of the perspective that the investment community has of the company, which can be attained through providing research and descriptions of interactions with shareholders.
Christopher: What is needed to prepare your new director for what’s ahead?
Steve: A thorough onboarding process and the existing board making the new board member feel welcome. Properly welcoming a new board member involves one-on-one communications between existing directors and management and the new director.
Christopher: How do you support your new director in understanding the dynamics of the board as a policy body, its culture and how the newly recruited director can blend his or her talent into the success process?
Steve: The director should be invited to serve on the board committees that he or she has the most experience with, and existing board members and management should describe as much as possible about how board meetings are conducted. Sharing prior minutes of board meetings can be helpful.