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Unpublished Paper
WHO SITS ON TEXAS CORPORATE BOARDS? TEXAS CORPORATE DIRECTORS: WHO THEY ARE AND WHAT THEY DO
ExpressO (2011)
  • Lawrence J. Trautman, Oklahoma City University
Abstract
Corporate directors play an important role in governing American business, in the capital formation process, and are key to economic growth. Texas businesses play a disproportionately important role among the states in aggregate U.S. job creation, responsible for 37% of all net new American jobs since the recovery began. It is the job of the board of directors to govern the corporation. Director’s duties and responsibilities include: the duty of care; duty of loyalty; and duty of good faith. The recently published Trautman’s Guide™ to Texas Corporate Directors, provides biographical data for most of the approximately 20,000 for-profit corporate directors serving on the boards of Texas companies. It also provides details about standing committee composition, leadership and membership for audit, compensation, executive, nominating and governance, and strategic planning committees. Corporate directors are among the most influential and affluent in our society. Many present or former chief executive officers are sought to serve on corporate boards due to their expertise and experience overseeing corporations at the highest level. The average age of Texas directors of for-profit entities is fifty-seven years old; and only about six percent of corporate directors are women. Texas corporate directors are highly educated: over ninety-nine percent are college graduates: eighty percent hold advanced college degrees; twenty-eight percent have law degrees; and twenty percent of Texas corporate directors hold an MBA degree. Most Texas corporate directors serve the banking and finance sector (thirty-nine percent), next largest is the energy sector (at eighteen percent), and technology companies account for nine percent. Most boards look to recruit someone who understands their business and former CEOs are preferable. Every board of directors of a public company must now have an audit committee comprised of entirely independent directors, and each publicly-traded company is required to have at least one qualified “financial expert” on its audit committee. Therefore, along with a growing recognition that every board needs expertise to govern the enterprises’ information technology--- these have become “must have” skills represented on every board.
Keywords
  • audit committee financial expert,
  • boards of directors,
  • business judgment rule,
  • corporate directors,
  • corporate directors by company size,
  • corporate directors by number of employees,
  • corporate directors by sales/revenues,
  • corporate directors by industry,
  • corporate director skills in demand,
  • corporate governance,
  • director affluence,
  • director demographics,
  • director gender,
  • director education,
  • duty of care,
  • duty of good faith,
  • duty of loyalty,
  • information technology governance,
  • nominating and governance committee,
  • texas job growth
Disciplines
Publication Date
August 1, 2011
Citation Information
Lawrence J. Trautman. "WHO SITS ON TEXAS CORPORATE BOARDS? TEXAS CORPORATE DIRECTORS: WHO THEY ARE AND WHAT THEY DO" ExpressO (2011)
Available at: http://works.bepress.com/lawrence_trautman/2/