Sitting CEOs Get the First Call: Broad talents are needed for a board, but there's no substitute for the experience of a current chief executive.

• Author: Rock, Robert H.

For advice and guidance regarding how to handle a crisis such as a pandemic shutdown, a financial meltdown or a supply chain breakdown, CEOs reach out to their board of directors, particularly to those members who have a deep understanding of such crises because they have dealt with similar ones before. In particular, they call those "sitting CEO" directors who are concurrently dealing with these challenges. For example, when COVID hit, these directors got the first call.

Fifty years ago, I wrote my Harvard Business School doctoral dissertation on "The Chief Executive Officer," a title that was then just coming into wide usage. I examined the nature and scope of the CEO's role, which was, and still is, much broader and much more complex than other management positions. During the course of my career, first as chairman and CEO of the Hay Group and later as chair of several comp committees (now often called HR committees), I analyzed, evaluated and rewarded the unique role of the CEO. The job is much bigger than the next-highest-ranking position and is compensated accordingly, often by an order of magnitude. Though not all CEOs are extraordinary, in the context of their organizations, their job is.

When recruiting a new director, sitting CEOs are often preferred but are thought to be hard to recruit. Therefore, most board searches start out by developing a matrix that identifies particular experiences (such as international assignments) and specific competencies (like risk management) that are important for informed board deliberations. In recent years, the "skills matrix" has been enhanced with DEI qualifications and ESG talents to assure board composition with greater diversity and wider experience.

Identifying gaps in the board's skills, experiences and backgrounds is important when recruiting new directors. One very important gap could be CEO experience. Sitting CEOs and recently retired ones bring a unique perspective that can be very valuable to the board in general and to its CEO in particular. They bring a top perspective and a deep understanding of the board's principal duties and...