Sullivan Associates is one of two search firms in the United States that deals exclusively with directorships and places approximately 30 executives with major companies each year. Ms. Baldwin is an exception in the Fortune 500. Women account for only 11.2 percent of those board seats, according to New York-based research company Catalyst. Corporations look for CEOs with experience in a given area, Mr. Sullivan says. A firm looking to expand its Web presence, for example, might look for a director with a successful record in Internet marketing.
Boards have various duties.
A board ensures timely disclosure of corporate information. On an advisory board, the power swings to the CEO, the emphasis is on strategy and the board's legal liability is minimal. This does not include stocks, which account for 54 percent of board compensation. In addition, says Mr. Sullivan, companies provide other perks. Ford Motor Co. and General Motors reportedly give directors a new car every six months, and some airlines provide free first-class travel to directors and their spouses.