Jeffrey Stein is a partner in the Corporate Practice Group at King & Spalding LLP. This post is by Mr. Stein and Michael J. Egan, a partner in the Corporate Practice Group at King & Spalding. Mr. Egan served on the Advisory Board of the PricewaterhouseCoopers Lead Director Survey, discussed in this posting. Read the Survey here.
In 2002, the New York Stock Exchange first mandated that listed companies have a “presiding director” to undertake the functions of presiding at meetings of the independent directors and receiving communications from shareholders. In the ensuing eight years, the prevalence of presiding directors, lead directors and non-executive board chairmen (all of which we refer to as “lead directors”) has increased significantly, so that almost all large U.S. public companies now have such an independent board leader. The powers exercised by lead directors have become more important, with many lead directors moving beyond the limited tasks required by the NYSE to exercise central roles in improving the performance of their boards and their companies.
With the increased importance of lead directors for U.S. public companies, it is timely that PricewaterhouseCoopers has undertaken a comprehensive survey of lead directors (the “Survey”). The report of the Survey, “Lead Directors: A study of their growing influence and importance” was published on April 22, 2010, and a series of briefings discussing the results of the survey has now been held in three cities. The Survey is available here.