How independent directors can add value to private boards

In any boardroom conversation, independent voices are vital to the quality of the discussion and the rigor of thinking and decision making. For private companies it can be game-changing, with the potential for taking the thinking on strategy, risk, talent, and the future of the business to a different level.

To go behind the data of our 2023 private company director survey and better understand the real-world factors driving the use and effectiveness of independent directors, we convened roundtables with private company directors—in conversation with CEOs—around the country.

These candid discussions provided insights into the value that private company directors and CEOs see independent directors adding—from providing a broader perspective on strategy, offering additional expertise in critical areas such as emerging technologies, international markets, and risk management, to helping instill the right tone and culture, and helping define the path as the company matures to a more robust governance structure. Participants also highlighted the fact that figuring out how to draw on the talent and skills of independent directors takes planning and work.  

Our conversations, conducted under the Chatham House Rule, highlighted a number of factors that both private company directors and CEOs view as essential to successfully tapping into the value of independent directors.