News 2 | How Many Board Seats Is Too Many?
Today a new article relevant to governance of venture-backed companies was published by The Information, one of the leading subscription-based digital media companies.
The article identified at least 24 venture capitalists who hold nine or more directorships at technology companies, questioning the "overboarding" practice in the industry. The article also compiled a list of investors who sit on multiple boards, identifying the names of the VC firms and of the portfolio companies and/or public companies where they hold their board seats.
Evan Epstein, the Founder and Managing Partner of Pacifica Global, was quoted as saying "the practice of holding more than 10 board seats (seems) “crazy” and predicted it would become less common over time as the risks became apparent, especially to large private tech companies. 'It works for a very limited number of people who can pull it off,' he said. 'But everyone thinks they’re in that position.'”
Alfred Lee, the author of the article, has done a great job reporting and writing about private tech companies, particularly regarding some of its more obscure governance features.
Pacifica Global was founded in San Francisco to serve as the leading international advisory firm focused on corporate governance, anti-corruption, and shareholder rights issues throughout Latin America. The mission of Pacifica Global is to help multinational public and private companies solve some of their most complex governance problems including cross-border regulatory and compliance challenges.