The case for a communications board seat
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Illustration: Tiffany Herring/Axios
The OpenAI saga not only highlights the need for strong communication — it highlights the need for strong communicators in the board room.
Why it matters: As Axios' Dan Primack points out, "A lousy board of directors, or a nonexistent one (e.g., FTX, Twitter), creates the conditions for chaos."
- This exposes the company to major risk and irreparable reputational damage.
The big picture: Corporate boards are increasingly aware of the importance of reputation — which makes up 25% of market value — and communications' role in enhancing and protecting it.
- They are also increasingly aware of the fact that policy communications is material to a company's ability to grow and succeed in global markets.
Yes, but: There still is a tendency for boards seats to go to recently retired CEOs and CFOs.
- Only 16 chief communication officers sit on Fortune 500 boards, according to a recent Spencer Stuart report.
What they're saying: "Just imagine the conversation around the board table that incorporated a [corporate affairs] perspective," Megan Shattuck, vice chair and global managing partner of Diversified Search Group's corporate practice.
- "And some might say, well, we have that perspective in our C-suite, but when the door is shut, and it's the board debating, scenario planning and thinking through the implications of their decisions, it's just a different dynamic with a corporate affairs voice around the table."
What to watch: What to watch: OpenAI's interim board — which currently consists of former Salesforce co-CEO Bret Taylor, former Treasury Secretary Larry Summers, Quora co-founder Adam D'Angelo, and a non-voting seat held by Microsoft — will be scrutinized over its structuring and how its members communicate with internal and external audiences.
