Tougher laws, longer hours taking a toll on those who serve on corporate boards
The plush leather chairs in America's boardrooms are feeling a little less comfy these days.
Serving on a corporate board of directors was once a collegial gig that paid big bucks for attending a few meetings, enjoying some lovely meals, maybe taking in a few rounds of golf.
Being a board member has become far more demanding.
Tough rules enacted in the wake of the Enron and WorldCom scandals mean that corporate directors put in more time and bear more responsibility. A more demanding breed of shareholder now maintains close scrutiny and isn't shy about criticizing. The current brouhaha at Hewlett-Packard and the widening scandal over stock-options backdating have cast a harsh light on the clubby confines of the boardroom.
"The job of being an outside director involves a tremendous amount more time, energy and angst than used to be the case," said Joseph Grundfest, co-director of the Rock Center on Corporate Governance at Stanford and a former SEC commissioner. "Ten years ago, these positions would often be honorifics; today they're often horrifics."
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