The intangible factor
In addition to their formal responsibilities, the board of directors has an ethical and moral responsibility to safeguard the interest of the shareholders. That’s why it’s so important to have board members with a passion for the company and a level of expertise in the activity of the company. As such, board members are often senior figures who can offer expert advice and guidance on the company's strategic direction.
For example, Boeing (BA -0.31%) has had its fair share of problems over the last few years. Still, its board of directors is as heavyweight as they come and represents a concerted effort to appoint senior industry figures. It includes the former CEO of GE Aviation, David Joyce (appointed 2021), the former CFO of United Technologies, Akhil Johri (appointed 2020), the former CEO of KPMG, Lynn Doughtie (appointed 2021), and the current CEO of Carrier Global (NYSE:CRR) and the former president of Collins Aerospace Systems, Dave Gitlin (appointed 2022).