Recruiting professors as board members.

• Author: Tompkins, James G.

Three corporate leaders talk about their experiences in drawing from academia to add to the board mix.

The success of a board is highly dependent on its composition - who its members are and what perspective they bring to the boardroom. The focus of this article is: What is the value that professors can bring, as directors, to the boardroom? To provide some insight into this question, I interviewed three chairmen/CEOs who have professors on their boards:

Robert P. Peebler is president and chief executive officer of Landmark Graphics Corp., the world's largest independent supplier of information technology for petroleum exploration and production. Professor Theodore Levitt of Harvard University is on Landmarks board. [Editor's Note: Subsequent to the interview, Landmark Graphics was acquired by Halliburton Co.]

Milton M. Shiffman is chairman of Sun Communities Inc., a large and rapidly growing real estate investment trust which owns and operates manufactured housing communities both in the United States and Canada. Professor Paul D. Lapides of Kennesaw State University serves on the board of Sun Communities.

Walter P. Stern is chairman of Capital Group International Inc., a major investment management firm, which includes Professor John G. McDonald of Stanford University as a director of several of its funds.

Although each of these companies is very different in its operations, some common themes emerged from the interviews:

* Professors can bring a unique perspective to the board which in turn enhances the board's diversity.

* Professors are not sought for their name or prestige, but rather their ability to make a tangible contribution.

* Professors with experience extending beyond the classroom are very desirable.

* As a board member, a professor must have the ability to apply practical thought to academic theory.

* The personal access which a professor has to the academic community and student body can become a valuable corporate resource.

What do you see as some of the most important goals that your board of directors should achieve?

Robert Peebler: The long-term goal is to assure the company has a business strategy that the board believes is a viable strategy for company growth over time. Its role is not to create that strategy (although it is clearly involved), but rather to ensure that the company has a management team capable of creating and implementing those strategies. The board should also be monitoring company progress against those strategies.

In the shorter term, the board needs to ensure that the systems are in place to run the business in a manner that achieves both fiduciary and ethical goals. I believe that the board members are representatives of both shareholders as well as other stakeholders such as employees and the community.

Milton Shiffman: The prime purpose should be to develop the future direction and growth of the company. In particular, it is important that the directors reach a consensus regarding the vision of the firm. While the board needs to approve the major decisions which shape the company's future, it does not need to be too involved with the day-to-day operations.

Walter Stern: First of all, I should point out that the role a director plays in a mutual fund setting is not the same as the duties which are typical for a more conventional corporate board. The main role in the mutual fund case...