Netflix (NFLX 0.39%) will soon have an open seat on its Board of Directors. Former United Nations Ambassador Susan Rice will exit the video-streaming veteran's governing group in order to direct President-elect Joe Biden's Domestic Policy Council. The change will take place on Biden's Inauguration Day in January.
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Dr. Rice's pending exit from Netflix's boardroom was announced in a terse Securities and Exchange Commission filing on Monday:
"On Dec. 9, 2020, Ambassador Susan Rice notified Netflix ... that she will be resigning from the Board of Directors of the Company effective Jan. 20, 2021."
Government officials are not allowed to hold office in public and private companies, though they are allowed to serve on the boards of nonprofit organizations. As Director of the Domestic Policy Council, Rice will manage a group of top-ranking government leaders, such as the Secretary of Defense, Attorney General, and Secretary of Labor.
Rice has served on Netflix's board since the spring of 2018. Current duties include a seat on the company's nomination and governance committee. As a former member of President Obama's national leadership team, Rice provides Netflix with valuable expertise on matters of global business and government relations. These insights matter for a company with business operations in more than 190 countries around the world, including many with tight regulatory frameworks for media businesses such as Netflix.
Rice drew speculation when she sold a large portion of her Netflix shares and stock options in August. Many took this as a sign that she planned to seek a role in Biden's administration. Some political observers even envisioned her as Biden's running mate at the time, but that job was filled by Vice President-elect Kamala Harris. Netflix is now actively looking for a worthy replacement.