In 2017, a Deloitte study found that “high-performing S&P 500 companies were more likely (31 percent) to have a tech-savvy board director than other companies (17 percent).” Khalid Kark, Tonie Leatherberry and Debbie McCormack, Deloitte LLP, Technology and the Boardroom: A CIO’s Guide to Engaging the Board
It is 2016 and Wells Fargo had just “survived” one of the biggest scandals of the decade. The creation of millions of fraudulent checking and saving accounts in the names of clients who had not given their consent. This event resulted in the loss of hundreds of millions of dollars and over 5,000 employees. A hit like this is not easily resolved or swept under the rug. But how? How did this company, one of the biggest banks in the world, dig itself into such a deep, expensive hole?
In 2011, Hewlett Packard (HP), was one of the most recognizable names in technology and at the forefront of the technological world. However, when the board decided to bring on a CEO with a spotted history, as well as relieve four other board members publicly, the company’s stock began to plummet. This entire fiasco could have been avoided if the board had practiced one very important skill. That skill is doing your due diligence.