Dear Board Doc: How to Onboard Directors During Pandemic

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Q: Can you recommend some best practices on onboarding a new board member during this virtual environment?

A: To our knowledge, only a handful of fund boards have brought on new directors since the pandemic caused the nationwide shutdown about a year ago. Overall, these boards report that the onboarding process has been a unique experience yet they have managed to successfully integrate their new members. Some of these boards had already begun the interviewing process before the shutdown began therefore candidates may have met one or two board members and executives from the adviser. However, we have heard of new board members who have never met their fellow directors in person or experienced an in-person meeting.

Boards have adapted their onboarding practices with technology, for instance holding casual one-on-one meetings among directors via Zoom or telephone calls to familiarize the new director with other board members and key adviser personnel, including the CEO, CIO, fund and board counsel. Boards may also schedule happy hours or coffee breaks to facilitate introductions and relationship building for new directors. Some boards have had either a board liaison, CCO or a fellow director, conduct an in-depth review of the board book with the new director before the first board meeting. These board material orientations have been helpful to new directors as they can provide context for topics that have roots and history that a new director may not absorb from simply reviewing the board book. Whether via videoconference or telephone, providing new directors with foundational knowledge before the board meeting can be extremely helpful for new directors.

There are certain advantages to the remote environment. Video conferences can increase the level of personal engagement as these calls allow directors to effectively invite others into their homes. Virtual meetings can be scheduled more frequently without the cost and constraints of long-distance travel. The virtual environment may also relieve some negative boardroom dynamics or make board factions less of an issue during a videoconference which places everyone on more equal footing. On the other hand, newer directors may be disadvantaged because they cannot observe these boardroom dynamics in person, where body language is more easily discerned. As we slowly ease out of the challenges of the virtual environment, most boards will probably be relieved to resume interviewing and onboarding candidates face to face.