Am I Being Too Subtle?: Straight Talk From a Business Rebel

by Sam Zell

The experience was shocking. I realized then the danger of boards that were beset by cronyism and inertia—as if an appointment to a board was a perk, a retirement benefit or a no-strings gift to golfing buddies. My philosophy on board composition and culture is the antithesis of what I saw on the Santa Fe board. As the chairman of public companies, I’ve always selected board members based on the assumption that they were cheap consultants to the business, not potted plants. I’ve never hesitated to use them—or to have management teams use them—to further the objectives of the company. Also, board materials are prepared with all relevant information prior to meetings. Board members are expected to read the materials in advance, and the real purpose of the meetings is to generate robust discussion. Our board meetings are often raucous, with frequent interruptions, questions, and commentary. As a result, our companies have always benefited from the combined wisdom of our directors.