ESTEEMED PANEL
Moderator:
Tanya van Biesen, MBA,
Spencer Stuart
Robert Doyle, CA, C. Dir.,
The Director’s College
George Lewis, FCA, FCPA, ICD.D, CFA,
RBC Wealth Management & RBC Insurance
Una Power, CA, CFA,
Nexen
Arni Thorsteinson, CFA,
Shelter Canadian Properties

The Career Management Committee of CFA Society Toronto held a sold-out Board of Directors panel in February. Board executives shared their insights and recommendations on how to leverage the CFA experience into the opportunity of serving on public, private, and not-for-profit boards. This inaugural event was geared toward the Toronto chapter’s seasoned professionals to further develop career enhancement opportunities.

The CFA program prepares financial professionals to fulfill their roles. Similarly, financial professionals need careful preparation over many years to position themselves for board opportunities. On average, panellists had more than 20 years of work experience prior to joining their first board. Although areas of expertise varied, the common threads among panellists included the following:

• senior management experience and a high level of recognized professional accomplishment
• a strong network of personal and professional relationships built and cultivated over time
• continuing education through director accreditation programs
• starting on a not-for-profit board
• solid industry foundations built on the basic tenets of financial analysis, business strategy, ethics, and sound judgment
• a transition from management to oversight

As with any recruiting process, board composition and requirements are based on many factors, including a skills matrix that identifies the different skills needed for the board as a whole. The starting point is sound judgment and a holistic view of business, along with the above common threads.

CFA charterholders are uniquely positioned to serve on boards, given the rigour of the CFA program, our work experience, our daily interactions, and our ability to engage with corporate board members through such topics as environmental, social, and governance issues.

In addition, charterholders can also provide the investor’s perspective on long-term value creation. This allows for our professional networks to grow and for board members to assess our abilities during those interactions. Other key aspects to build on are proving your ability to constructively engage with others on a variety of topics and demonstrating by example the ability to collaborate on an issue in a congenial fashion.

“CFA charterholders are uniquely positioned to serve on boards…”

Diversity, term limits, and not-for-profits

Board composition is driven by many factors, but diversity—on the gender and cultural fronts, as well as a growing trend for term limits—can act as a new trigger for an ever-growing need for new board members. The Ontario Securities Commission has implemented a “comply or explain” approach when it comes to gender diversity on corporate boards, and popular thinking is moving toward term limits to ensure that board renewal occurs, given the demographic shifts at the local and global levels.

Not-for-profit boards are the perfect place to gain experience as a board member, as they typically follow all the same protocols and procedures as the for-profit boards. They have the same types of committees (e.g., audit and governance) and deal with the same issues (e.g., succession planning, strategy, and financial dilemmas).

Not-for-profit boards provide an opportunity to hone and enhance collaborative skill sets and have the added benefit of usually being a “passion” for the proposed board member. Panellists couldn’t emphasize enough, however, that any board opportunity requires 100 percent commitment, as your reputation from serving on that board will remain with you for a long time.

Food for thought

Irrespective of the type of board you choose, there is much to consider. One of the more important considerations is to be honest with yourself and truly assess your ability to add value, given your experience and skill sets. This does not mean having to stick to a single industry, but it does mean thinking about the insights you can bring to the discussion around the boardroom table. Due diligence is crucial, and in making sure that the entity’s reputation is good, or that it’s on its way to changing, you can be key to that process. The integrity and reputation of you and your management inevitably become intertwined.

Lastly, you have to consider the amount of time and effort that board work will require—over and above its being personally rewarding (i.e., broadening one’s horizon or experience set). The audit committee is usually a good place to start on a board as it tends to interact with all the other board committees and delivers a more holistic view of the business.

KEY TAKEAWAYS

• Be the best professional you can be while steering your career through greater and greater accomplishments (e.g., leadership roles, diverse experiences) while upholding a stellar reputation.
• Cultivate your personal and professional networks (including search firms) carefully.
• Pursue accreditation, as more and more boards are requiring it.
• Experience on a not-for-profit board is a great first step.
• Work on enhancing your collaborative and collegial skill sets.
• Be realistic about your value proposition.