by Mark Rogers, CEO of BoardProspects
Top 10 Board Appointments of 2024(so far)
As we are now half-way through 2024, I thought now would be a good time to step back and see which of thousands of board appointments which have already happened this year stand out, at least “on paper”, for adding significant value to the boardroom.
Here are my “Top 10 Board Appointments of 2024 (so far)”:
Honorable Mention: AIG – Chris Inglis; Apple – Wanda Austin; Colgate-Palmolive– Brian Newman; Comcast – Wonya Lucas; Gilbane – William McKeon; Instacart –Victoria Dolan; Intel – Stacy Smith; J.P. Morgan – Mark Weinberger; Mattel – DawnOstroff; MetLife – Laura Hay; Mondelez – Brian McNamara; PayPal – Carmine DiSibio; Quest Diagnostics – Robert Carter; United Airlines – Rosalind Brewer; Vera Bradley –Jessica Rodriguez; Verizon – Caroline Lithfield; and Vertex Pharmaceuticals – Jennifer Schneider
10. Walgreens – Appointment of Robert Huffines
Pharmacy chains have been under significant pressure during the past several years as they face declining reimbursement rates as well as retail challenges from big box stores and Amazon. Walgreens is losing market share to its much larger rival CVS and is now planning store closures. It is clear that the chain needs to seek new opportunities to drive profitability and Robert Huffines has the experience and ability to lead a new strategy from the company’s boardroom. Huffines is the recently retired Chairman of Investment Banking at J.P. Morgan Chase where for more than 30 years he guided healthcare companies on strategy, mergers and acquisitions. It is difficult to think of a better appointment to Walgreen’s board under the present circumstances.
9. Mobileye – Appointment of Elaine Chao
Mobileye’s shareholders scored a significant victory with the appointment of Elaine Chao to the company’s board. It is difficult to imagine there being a more accomplished executive and board member in history than Chao. She has served as U.S. Secretary of Labor, U.S. Secretary of Transportation, CEO of United Way of America, and board member at Bloomberg, Lotus, Northwest Airlines, Kroger, Bank of China, ChargePoint, and Hyliion. Mobileye is a publicly traded autonomous driving company whose technology can now be found in more than 150 million vehicles. As Mobileye’s software continues to expand globally it is clear that Chao’s executive and international experience will bring substantial value to the company.
8. Emerson – Appointment of Calvin Butler
Emerson’s stock is up almost 20% from what it was a year ago - and up more than 50% from what it was 5years ago. Nevertheless, there are recent concerns of a lack of business growth for the global technology and engineering company and a failure to reinvest profits back into the company. The board is highly accomplished with a significant industry expertise in power generation (oil, gas, clean energy, etc.), which is one of the focal points of Emerson’s customer base. However, there is a lack of deep experience in the end stage of electricity distribution. Calvin Butler solves that dearth. He is the President and CEO of Exelon, the nation’s largest utility company. He has been in the Exelon family since 2008 serving in a variety of executive positions.
7. General Mills – Appointment of John Morikis
It is no easy feat for a Fortune 500 company in the consumer manufacturing space to recruit a highly accomplished board member from another Fortune 500company in the consumer manufacturing space, but that is exactly what General Mills did with the appointment of John Morikis. He is the Executive Chairman and former Chairman and CEO of Sherwin-Williams. Morikis started out with the company in 1984 as a management trainee and has been an integral part of Sherwin-Williams almost meteoric growth during the past 15 years. He is highly regarded for his deep understanding of strategic management and will almost certainly bring substantial value to General Mills boardroom.
6. lululemon – Appointment of Teri List
The unsettled global economic outlook continues to place a high premium on CFO experience at the boardroom table – which is why lululemon’s appointment of Teri List to the board is such an accomplishment. The athletic apparel company, whose stock has struggled in the first half of 2024, will benefit greatly from List’s expertise in finance. List has an extraordinary resume, having served as the CFO at Dick’s Sporting Goods, The Gap, and Kraft Food Group. Prior to that she spent nearly 20 years in executive positions at Procter & Gamble. In addition to her c-suite experience, List brings with her to lululemon her impressive record of board service, which includes current board positions at Microsoft, Visa, and the Danaher Corporation.
5. AON – Appointment of Jose Antonio Alvarez
The rich get richer. Aon has a market cap of $64 billion and projected revenues in 2024 of $15.5 billion, with 9.5%year over year growth. The professional services firm is one of the world’s most successful companies and in my opinion has one of the most talented board of directors that can be found across the globe with former c-suite executives from such companies as American Express, Goldman Sachs and National Grid. To that roster, Aon now adds Jose Antonio Alvarez, the former CEO of Santander. Alvarez is widely credited for Santander Group’s successful growth from a mostly European financial services company to a true global leader. Aon now operates in more than 120 countries and Alvarez’s international experience should be immeasurable.
4. United Airlines – Appointment of Rosalind Brewer
The airline industry is back stronger than ever with record numbers of travelers taking to the skies this year. The projected revenue of the industry in 2024 is now just shy of $1 trillion and investors are signaling their confidence in United Airlines’ strong position in the market. The company’s shares have gained more than16% year-to-date compared with 11.5% for the rest of the industry. However, the airline industry is always fiercely competitive and there is a renewed push to win the loyalty of customers. Which is why United’s appointment of Rosalind Brewer is so brilliant. Brewer fully understands the challenges and intricacies of consumer facing businesses having served as CEO of Walgreens and COO of Starbucks. She has been recognized by Forbes and Fortune for their “Most Powerful in Business” and will almost certainly keep United on a continued upward trajectory.
3. Amazon – Appointment of Andrew Ng
Artificial Intelligence (AI) is perhaps the biggest topic in today’s corporate world in terms of its implications for innovation, growth, and efficiencies. The biggest names in technology – Apple, Meta, Google, and Microsoft are spending billions on research and development to bring AI products to the market. Surprisingly, Amazon was late to the game and is now playing a bit of catch-up. To hasten its progress, Amazon went out and brought to its board one of the world’s leading minds in AI. Andrew Ng is the Managing General Partner of AI Fund, a venture studio that supports entrepreneurs to build AI companies. Ng was the Founding Lead of Google’s Google Brain (Deep Learning) Project and has written extensively on the topic of machine learning. Amazon still has a ways to go to bridge the AI distance with its competitors, but Ng should help close that distance.
2. ExxonMobil – Appointment of Maria Jelescu
ExxonMobil has undergone a tumultuous few months beginning with its filing a lawsuit to block a shareholder proposal which called for it to reduce emissions. Although the company then defeated a subsequent “vote no” campaign against its Chairman and Lead Director, there is still a disquiet among shareholders as to how the energy giant will address future proposals to expedite the reduction of carbon emissions. Amidst this period of upheaval it is possible many overlooked Exxon Mobil’s appointment of Maria Jelescu Dreyfus to its board of directors. Dreyfus is the CEO and founder of Ardinall Investment Management, an investment firm focused on sustainable investing and resilient infrastructure, and isa highly regarded sustainability and financial expert. She is exactly who the company needs in its boardroom right now to reassure shareholders of ExxonMobil’s commitment to cleaner energy and reduced carbon emissions.
1. OpenAI – Appointment of Gen. Paul Nakasone
While Amazon’s appointment of Andrew Ng demonstrates the immense potential of AI, OpenAI’s appointment of General Paul Nakasone to its board underscores the widespread concern of the potential dangers posed by AI. OpenAI, which is backed by Microsoft, is strongly in the lead in what has become a very competitive field to bring AI products to the consumer marketplace. However, the company is still recovering from an internal fiasco last year when its founder and CEO, Sam Altman, was fired by the board for allegedly providing in accurate information about the safety processes that the company had in place to mitigate the risks associated with their AI products. Although Altman was eventually rehired, there remains concern that the company could be chasing commercialization at the expense of safety. Enter Nakasone. He served as the commander of the U.S. Cyber Command and was former Director of the U.S. National Security Agency. Nakasone brings with him to the boardroom not only extraordinary cybersecurity credentials but also a recognized set of values and ethics which should convince the company’s stakeholders of an underlying commitment to safety.
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