Board of Directors

 

Hazy Shade of Winter

Time, time, time
See what's become of me
While I looked around for my possibilities
I was so hard to please
Look around
Leaves are brown
And the sky is a hazy shade of winter

Time matters!

The average investor holds a share of stock for 5.5 months. The life expectancy in the United States is 77 years. The company however should be expected to last forever. These different time frames may be why there are problems in deciding the best strategy for a company.

A company consists not only of its Investors. It also consists of its Labor and its Intellectual Property. The time frame of the Board of Directors of a company should not be as short as that of the shareholders. It should be longer than the life expectancy, which by definition will be longer than the working years, of any single employee. It should be forever. A Board of Directors which represents only investors, might choose a strategy which is best in the short term, but is not the best strategy.

Having a requirement that the Board of Directors of companies include, not only seats for investors, but seats for employees, and at-large seats that are NOT investors, would seem to be in the government's interest AND in the company’s interest. Compensation for the members of Board of Directors should NEVER be in cash, it should only be in shares of the company which can not be sold until that member leaves the Board.