Perhaps what should be asked is why there is such a small pool to choose from? Is it because they look inward to the industry rather than across their value chain of delivery?
Often times, wasn’t dissenting advice offered? Was it ever internalized or processed by the management team? There seems to be an inner group that continues to dominate boardrooms and executive suites — eve today. One only has to look at the musical chairs that go on as executives and directors move from one firm to another all within the same industry or sub-niche.
Yes, experience counts for success. Your examples of GS and JPM are clearly noted success stories – but they are success stories that start with strong and visionary CEO’s. So when we examine governance, the real question is “What role does the board really play and how strong is the management team?”
Are they willing or able to deal with divergent thoughts other than their own? The board supports the firm, investors, and the management team — their role is not in running the company day-to-day.
For the complete FT article, see http://www.ft.com/cms/s/3/f0bdcbe8-3752-11df-b542-00144feabdc0.html?ftcamp=rss