Board recruiting is a sophisticated matching system to help companies identify and recruit board members. This is a first-ever service of its kind geared to public and private corporations.
The Nasdaq Stock Market, Inc. ("NASDAQ(r)") (Nasdaq:NDAQ) announced on May 21st the launch of Board Recruiting (www.boardrecruiting.com), an online service to help public and private companies identify board members. It is the first online service of its kind and the first board recruitment service to be offered by a stock exchange.
Board Recruiting is a profile matching system that connects potential board member candidates with boards seeking directors. Candidates and boards will only be matched once mutual interest has been established to ensure that subsequent conversations are relevant and productive. Board Recruiting was created to provide companies with a more efficient, comprehensive and cost effective way to find board members.
"Board Recruiting was created to meet an increased need on the part of both public and private companies to find qualified directors," said Bruce Aust, Executive Vice President NASDAQ's Corporate Client Group. "With term limits, fewer multiple directorships, and the move toward increased independence, sourcing candidates has become more difficult. We are filling a need our customers have communicated to us, and we are creating a broader pool of high quality candidates that has not been available in this format before."
"Consistent with NASDAQ's approach to good corporate governance, we think this service will greatly enhance the traditional board recruitment process, which is often done by word of mouth," said David Smith, President of the Society of Corporate Secretaries and Governance Professionals. "At The Society we are deeply concerned about board structure and process, and we applaud this innovative initiative that could encourage a better strategic approach to board member selection. Individuals with special skills and talents who might not normally have been sourced can be matched with companies requiring those skills to support their corporate strategy."
According to The National Association of Corporate Directors, directors on public boards spent an average of 210 hours on board-related matters in 2006, up from 190 average hours in 2005. Increased responsibility and a higher time commitment have lead to a decrease in multiple directorships, shrinking the pool of available board directors. However, research findings regarding new board talent point to a positive trend; according to Spencer Stuart, of the 391 new directors of S&P 500 companies in 2006, 31% were first-time public company directors.
Board Recruiting is a service of NASDAQ Corporate Client Services. NASDAQ provides a broad range of strategic support services to public companies, including disclosure via its PrimeNewswire and Shareholder.com subsidiaries, directors and officers insurance brokerage through Carpenter Moore, and institutional-grade research through its joint venture with Reuters, the Independent Research Network.
Board Recruiting will operate with a subscription model, with contingency fees upon successful placement of a director candidate.
Board Recruiting operations will be based out of New York and Maynard, Massachusetts. -NASDAQ
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