Capital One Hosts The ELC’s Q3 CBI Event Focused On Board Member Compensation
The Executive Leadership Council (ELC) held its 2016 Q3 Corporate Board Initiative (CBI) Panel Discussion and Networking Reception on Tuesday, September 13 th. Capital One hosted the event at The Cosmos Club in Washington, D.C. More than 40 ELC members, Capital One executives and invited guests gathered for this special event focused on “Demystifying Board Compensation.”
The event featured a panel discussion with a governance thought leader, a corporate director and a veteran board search executive who shared key insights and advice for better understanding the board compensation process. ELC COO Brickson Diamond served as moderator of the panel, which included: Peter R. Gleason, President, National Association of Corporate Directors (NACD); Kathryn Turner, Chairperson, Compensation Committee, Carpenter Technology, Inc.; and James Reo, Head of Executive Search, Talent Acquisition, Capital One.
The panelists engaged in a candid discussion exploring the key challenges, misconceptions and trends in today’s board compensation practices. The panel suggested the first question you should ask yourself is “why do you want to be on a board?” Many seek board service for the experience and as a resume builder while others may see it as a regular source of income. While fairly compensating corporate directors for their service is essential, a prospective board member should also take into account the roles, responsibilities, time commitment, seniority/experience level, geographic location and committee involvement. While there are no specific compensation guidelines that apply to all businesses, the following are key circumstances you will want to consider:
- How many times per year does the board meet? Determine whether the board opportunity and compensation are worth the time commitment.
- Is there committee work involved? Board members usually receive additional compensation for service on committees.
- Are there business challenges that require a high-level of experience? Individuals with deep expertise generally are in higher demand.
- Are there other methods of compensation besides cash? Many public companies primarily pay in company stock with limited cash compensation.
- What are the tax implications? The more you make, the more taxes you pay which will likely offset your earnings.
Prior to the panel discussion, Capital One executive Rodney McKenzie delivered welcome remarks on behalf our event host. ELC President and CEO Ronald C. Parker also delivered remarks and welcomed Kenneth Bouyer, Americas Director of Inclusiveness Recruiting at EY. EY recently partnered with The ELC for a multi-year agreement as a new sponsor of the CBI program. Gail Johnson, Executive Director, Human Resources at AT&T was also on hand to deliver closing remarks on behalf of AT&T as a multi-year CBI sponsor.
The panel discussion concluded with remarks from CBI Chair A. Louis Parker who provided an update on The ELC’s recent board placements. To date, ELC members have secured a total of 173 board seats since the launch of the Corporate Board Initiative in 2011. This number is nearing The ELC’s goal to reach 200 new board seats held by global black executives by the end of 2017.
The panel was then followed by a post-event networking reception where guests continued the conversation on board compensation.
The ELC’s CBI program is designed to prepare black executives for service on corporate boards. It builds awareness, improves readiness and enhances the visibility of ELC members who are interested in and actively pursuing board service. The Washington, D.C. event is one of several quarterly CBI events that took place this year, including events in San Francisco, New York City, and an upcoming event on October 6 th in Chicago.
(L-R) ELC President & CEO Ronald C. Parker; ELC COO Brickson Diamond; Melissa Sanderson, Diversity Talent Acquisition, Capital One; Kathryn Turner, Chairperson, Compensation Committee, Carpenter Technology, Inc.; ELC member Shavonne Gordon, Head of Diversity, Capital One; James Reo, Head of Executive Search, Talent Acquisition, Capital One; Peter R. Gleason, President, National Association of Corporate Directors (NACD); and CBI Chair A. Louis Parker, Retired Corporate VP, GE; Founder, CFO, COO, Visible Men Academy
Kenneth Bouyer, Americas Director, Inclusiveness Recruiting, EY delivering welcome remarks as a co-lead sponsor of The ELC’s Corporate Board Initiative
(L-R) Brickson Diamond moderating the Board Compensation panel discussion featuring James Reo, Kathryn Turner and Peter R. Gleason
ELC members and guests enjoying the post-event networking reception