Directors Roster.

• Author: Porter, Martin
• Position: Brief Article - Statistical Data Included

In affiliation with Spencer Stuart -- a quarterly record of new director appointments

THE AUTHORS OF THE JUST-published book, Corporate Boards: New Strategies for Adding Value (see review on page 17), devote a sizable section to what they call "Net-enabling the board." A growing focus on the Internet's impact on the processes of governance prompted us to query several executives who appear in this edition's roster of newly elected directors on their experience with board-related e-mailing.

These executives reveal that corporations -- typically through the general counsel office -- send e-mail to directors, but mostly on administrative details. This, they say, is the best use for board-related e-mail, especially considering privacy issues that may possibly compromise sensitive company information.

Michael T. Flynn, group president of Alltel Corp., regularly sifts through 4050 business-related e-mails each day. He never envisioned that any of these wired messages would be from a chairman inviting him to join a corporate board, but that's exactly what was sent to him by Matt Desch of Airspan Networks Inc. Flynn says he was expecting the invitation from Desch, whom he has known for more than five years, but says he did not expect to be reading the formal letter of invitation on a computer monitor. "Not that I minded it," he adds. Apparently, the e-mail was sent as Desch was travelling on business in the U.K. Two other e-mails were later sent to Flynn by Airspan directors welcoming him to the board, and those were later followed up with e-mailed board meeting schedules. None of that e-mail, notes Flynn, contained any substantive material information about Airspan.

While Flynn describes himself as being "not overly concerned" about e-mail privacy, he firmly believes that board-related e-mail should only be used to convey less important administrative details. "There should be some established formality when communicating sensitive information by e-mail, or for that matter by any other means, so as to avoid creating a visible trail' he says, adding, "If you've ever been in an antitrust or high-stakes merger situation, you'll know what I'm talking about."

Sandra B. Peterson, vice president of marketing and strategy at Merck-Medco Managed Care, who is joining the board of Handleman Co., says she receives e-mail, also on mostly administrative and logistics matters, from Handleman's...