For decades, boards of directors for public companies were practically good-old-boy networks, with company executives and directors appointing friends and family members to serve.
"Historically, companies have gone through their contacts and put their buddies on the board," says Ken Adkins, the president of Greensboro, N.C.-based Adkins & Associates, an executive search firm that has handled some director searches.
But Sarbanes-Oxley, sweeping federal legislation passed in 2002 to overhaul the way public companies are run, has changed all that. As part of the legislation, the majority of members on a public company's board had to be independent by the company's 2004 annual meeting.
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