Editor's Note: In a first-of-its-kind study, CBM and AlixPartners partnered to use an approach that relies on the total shareholder return (TSR) of the companies they serve on the board of directors relative to their industry peers. We've identified the top 20 value-creating directors in the United States. Members will help guide you. See full list >
Ranked 20th on our list, Jan Babiak's extensive and extensive experience as a director has led to his outstanding service on boards. “If she only does one board, or even if she works for one company, she's pretty limited in what she can do,” she says. She said: “Gaining a wide range of boardroom experience allows me to stay vibrant and relevant.”
To ensure maximum effectiveness, Mr. Babiak has always carefully selected the role of the Board of Directors. “She wants to make sure she doesn't lack enough knowledge,” she says. “I can bring a lot of experience, so I wanted to create a complementary portfolio of boards across different sectors and even countries.”
For example, when the coronavirus outbreak occurred in late 2019, Babiak was on the board of a UK-based company with large operations in Asia. That prompted the U.S.-based company she served on as a director to jump into virus preparedness. It took the world by storm in 2020.
Mr. Babiak has experience in addressing ESG issues such as income statements, cybersecurity, and climate change through his executive and board roles. She has also worked internationally in other leadership positions, including as Global Managing Partner of EY in the UK. Additionally, she maintains both her CPA license and her certifications in cybersecurity and other aspects of information systems. “It forces discipline,” she says. “It costs money and time…but it also puts us in a position to understand provisions that are important to shareholders, like the new SEC standards.”
In general, Babiak says, “I try to intervene with good intentions. I don't want to be a manager, but I have to ask a lot of questions. And if my 'nose' is in there and something stinks… Then I think I have to push the nose further in. Don't hold your nose and walk away. ”
Babiak says it's important to treat board members as professionals. “There was a time when it was '3G plus 1' for many directors, which meant playing golf, gardening, and caring for grandparents plus one more board member. But for me, this is a job. So if I were to sit on the board… If I hadn't done [meetings], Attends board-related meetings. I go to all the places I can fit in. Let's talk about some.
Between meetings, Babiak also strives to stay informed and experience the company the same way his customers do. “I've been to over 400 of her Walgreens stores, and I don't know how many competitors there are,” she says. “Her husband calls it Walgreens Tourism. And I read the Walgreens press feed twice a day. It's about engaging without managing.”
Babiak added that board composition is also important in enabling individual directors to contribute to collective excellence, and said boards should avoid hiring “one-trick pony” directors. There is. “We have some great people in technology and digital marketing, but we can't have 90% of the board sitting silently. We need to make sure this is someone who not only has the right pedigree for the space, but also brings some depth.”
At the same time, boards need to ensure they have the necessary expertise for the industries they join in the room. For example, on a bank's board of directors, this means a retired or former chief risk officer. ”
Babiak joined the board of directors, which has no female members and is headed by a 96-year-old director, as part of a reorganization. “When I met with the CEO, he said, “We have to change things here, and we need dynamic, innovative people.'' You can be part of the change, not the status quo. I believe that,” she says. “I ended up joining the board, and two years later the board was 50 percent women.”
But even the board of a company with a strong team and momentum can face disruption. “We don't know what's going to happen,” Babiak said. “People on airline boards felt one way in 2019 and felt another way in 2020” as a result of the coronavirus pandemic. “For me, it's about the culture of the board and the people who share it. If they support me and know that we have an ethics center to do the right thing, I don’t mind driving through hell with you.”